Karl unleashes on ‘greedy’ big banks

RBA Governor Philip Lowe announced the bank would be hiking interest rates by another 25 basis points on Tuesday, taking the baseline rate from 3.1 per cent to 3.35 per cent.

Shortly after the rate hike, ANZ and NAB were the first of the big four banks to pass on the interest rate hike.

“I’m completely off the RBA and the big banks this morning,” Stefanovic said during the first hour of the show on Wednesday.

“Hard working Australians’ are being let down.”

He then turned his attention to the major banks suggesting with a sarcastic tone that they have abandoned their community-focused image.

“What about our banks this morning? Our kind hearted, community-focused banks, you’ve all seen the ads, ‘We care about you, we see you’,” he said.

“But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future.

“They should be ashamed of themselves.”

Stefanovic was not alone in his critiscm of the move, with Greens Treasury spokesman Nick McKim warning “the RBA is willing to smash Australia into a recession in pursuit of policy that is only benefiting the already wealthy”.

“The Treasurer needs to do two things,’’ he said. “Firstly, he needs to ask Philip Lowe for his resignation.

“Secondly, he needs to use the powers he has to reverse today’s decision by the RBA.”

NSW premier Dominic Perrottet also took aim at the big banks, accusing them of “double standards” over recent rate rises.

“Families are getting belted by interest rate rises. The banks should stop applying double standards,” he said.

“There were times during Covid when full interest rate cuts weren’t fully passed on, so why do rate rises have to be passed on in full now.

“With more rate rises on the cards, surely they can find some middle ground.”

Mr Perrottet said that the latest rate rise will “again hurt household budgets”.

The ANZ and NAB announced their increases just hours after the Reserve Bank, both are passing on the full .25 per cent from February 17.

NAB said it was not passing on a rate increase to savings customers at this stage, but the ANZ is giging ANZ Plus Save account holders a .25 per cent lift to 4 per cent.

Governor Philip Lowe acknowledged some households were beginning to feel a “painful squeeze” on their budgets and warned there are major clouds of uncertainty around the future of Australia’s economy.

In a statement, Dr Lowe warned there were a “range of potential scenarios” for the Australian economy, including how hard and when the full impact of the nine rate rises would hit families.

“The Board recognises that monetary policy operates with a lag and that the full effect of the cumulative increase in interest rates is yet to be felt in mortgage payments,” he said.

“There is uncertainty around the timing and extent of the expected slowdown in household spending. Some households have substantial savings buffers, but others are experiencing a painful squeeze on their budgets due to higher interest rates and the increase in the cost of living.

“Household balance sheets are also being affected by the decline in housing prices. Another source of uncertainty is how the global economy responds to the large and rapid increase in interest rates around the world.

“These uncertainties mean that there are a range of potential scenarios for the Australian economy.”