- fredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
Its a long time since I posted and don't normally come on to rant but an ANZ article yesterday really annoyed me.
ANZ are stating that the government should abandon the surplus goal as they are concerned about the state of the economy, yep great point. Yet on the other hand ANZ are one of the drivers behind not passing on the full rate cut. Why should the government abandon their plan yet ANZ aren't fully prepared to help out the country, ANZ its not what your country can do for your but what can you do for your country.
Im not sure if ANZ posted a record profit as I know a couple of the big 4 didnt' but even so they aren't poor, yes they are guided by their share holders, but I think its very shallow and hypocritial to say what they have. Some share holders would probably prefer the full pass on of a rate cut than not.
Maybe ANZ should throw the country a bone so to speak. Or are the CEO's to worried about being out of a multimillion dollar job.
I know they are a bussiness and that borrowing costs are high etc etc but surely it couldn't hurt too much when they do seem so concerned, maybe cut back on all the lavish xmas parties etc etc.
Does anyone agree with what im saying or do I have shallow thinking??moxi10Participant@moxi10Join Date: 2010Post Count: 194
I agree completely with you. Every time I hear similar comments from banks (rates should be lowered to stimulate the economy) I see the hypocrite behind the comment. They intend to profit from each rate drop by not passing it on in full. In the article which you posted a link to, the omission of a commitment to pass on future rate cuts in full was glaringly obvious.FreckleBlocked@freckleJoin Date: 2012Post Count: 1,680
Fredo I suggest you do some Econ 101 research on interest rates, how they're set, who and how they affect people and the wider economy.
This should allay much of your angst regarding this subject.
PS: You might also like to take with a grain of salt the comments promulgated by PR companies on behalf of corporate institutions. They rarely reflect reality or for that matter resemble even slightly the truth of the situation but rather a perception they would like you to believe in.fredo_4305Participant@fredo_4305Join Date: 2009Post Count: 336
So they are liars as well as greedy??FreckleBlocked@freckleJoin Date: 2012Post Count: 1,680fredo_4305 wrote:So they are liars as well as greedy??
You just described the political, corporate and financial world.
Banks are just like any other business entity. They're looking to protect and enhance where possible their income streams. 60% of revenue comes from interest bearing products.
They borrow short from overseas sources at fixed rates. They have to hedge that against FX movements and other costs. The money provides liquidity to the mortgage market. So the RBA sets an almost unrelated market rate and expects the banks to suck up the difference. Not good business. The problem with central bank interference is that it distorts market rates.
In the coming years I expect to see 2 problems appear; less liquidity and higher rates as the global situation continues to deteriorate. Central banks will have to make a choice between lower rates (to stimulate the economy) or suppressing inflation. They can't do both.
The few basis points you're getting your knickers in a knot about will be the least of your worries or things that irk you.