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Date Published : Wednesday, January 02, 2008
An influential voice has lent his support to calls for lenders to bring stability to the market for the benefit of consumers.
Malcolm Turnbull, spokesman for the opposition on Treasury matters, has called for Australia's major banks to set the trend for lenders by cutting back on raising interest rates on their products.
Many banks have raised rates recently in a bid to offset against higher borrowing costs in the aftermath of the sub-prime crash in the US. Some analysts are expecting the Reserve Bank to hike rates again next month to seven per cent - which could persuade some lenders to follow suit by raising their own rates.
However, Mr Turnbull urged the institutions to take a cautious approach over the coming weeks, adding that the increases to borrowing costs is hoped to be a short-term phenomenon.
Speaking to News.com.au, he said: "The banks have got to form the view as to whether these are short-term moves or part of a long-term readjustment of the price that lenders are going to demand.
"The banks have to manage their business and take into account changes in costs ... but it's very important that they practice measured restraint in a volatile financial environment.''
A spokesman for the Treasury agreed that families are under greater pressure during the winter and echoed the call for banks to be mindful of this.
Mr Turnbull is the current federal member for Wentworth.
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