Rudd very very concerned about rate rises

The big banks were a bit too quick to raise their standard variable mortgage rates according to the prime minister Kevin Rudd.

“I do note a contrast between, shall I say, the speed which interest rates are brought down on the part of the commercial banks and the speed with which they are put up,” Kevin Rudd told Fairfax Radio Network on Wednesday.

ANZ raised their mortgage rates within minutes of the RBA’s announcement on Tuesday of a 0.25 per cent lift in the official cash rate. The other majors lifted their rates before the end of the business day on Tuesday.

Mr Rudd also warned banks not to raise rates more the RBA raised rates, saying he would be “very, very concerned” if they did.

Source: Sydney Morning Herald