Joe Hockey Stands up for the Banks Once Again
Shadow Treasurer Joe Hockey must explain why he has given the banks an escape clause this morning to not pass on yesterday's Reserve Bank interest rate cut of 25 points.
On radio this morning, Mr Hockey said:
We continue to say that we expect the banks to pass it on in full, unless they can explain to their customers what justification for why they do not pass it on in full.
[Joe Hockey - Newsradio - 6 June 2012]
Mr Hockey voted against the ban on mortgage exit fees that make it easier for people to find a better deal and now, true to form, Mr Hockey has once again decided to stand up for the banks over working families and small businesses who are waiting for this rate cut.
Joe Hockey was part of a Government that saw ten interest rate rises in a row, including six consecutive rises after John Howard promised to keep interest rates low, so it's no wonder he has no idea of what rate rises mean for families and small businesses.
Today at 3.50 per cent the official cash rate is lower than it was at any time under the last Liberal government - and 325 basis points lower than when they left office.
A family on a $300,000 mortgage is now saving more than $3,500 a year less in mortgage repayments based on standard variable rates than when Mr Hockey and Mr Abbott were in Government.
Mr Hockey also acknowledged this morning that the Government returning the budget to surplus has given the Reserve Bank room to move on interest rates:
HOST: Just finally, the government reminded you that just a couple of days ago, you acknowledged that a surplus gives central banks, like the Reserve Bank room to move, that there's been a rate cut either side of the budget, therefore showing Labor's budget settings are giving the central bank room to move. Do you accept that?
HOCKEY: Well you know what's interesting Alex, we've been saying this for three years now, that if the government actually delivers a surplus then it's going to take upward pressure off interest rates.
[Joe Hockey - AM - 6 June 2012]
6 June 2012