Archive for the ‘Finance’ Category

RBA vs Banks Interest Rates Part 2 – The Growing Gap

Monday, July 16th, 2012
RBA and Banks Interest Rates Gap

RBA and Banks Interest Rates Gap

As per my post on the 4th of May the major banks are increasing the gap between the Reserve Bank of Australia (RBA) cash rate and the Interest rates they charge their customers.  Looking over the data from the year 2000 we can see how the rates gap has gone from a steady 180 percentage points (1.8%) difference to now a whopping 340 percentage points (3.4%) difference.  It is no wonder why the banks are continually making massive and quite obscene profits, especially as they continue to also charge excessive fees.