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Jessica Darnbrough
An overwhelming majority of mortgage brokers believe the major banks have successfully sidelined the RBA in the setting of mortgage rates, a new survey has found.
According to new research by 1300HomeLoan, 31 per cent of brokers believe the banks had distanced themselves from the RBA’s monthly rate decision even before National Australia Bank and the Commonwealth Bank of Australia failed to pass on Tuesday’s rate cut.
A further 53 per cent believed that if the banks refused to pass on the rate cut in full – as the BOQ, CBA and NAB now have - it would prove they were off the leash.
1300HomeLoan managing director John Kolenda said that since ANZ had moved to announce changes to its mortgage rate independently of the monthly central bank decision, they had pretty much given all banks the imprimatur to do whatever they wanted in relation to interest rates.
“People are already confused about who is driving interest rates and this shift is making it worse,” Mr Kolenda said.
“The old days when the RBA would announce a change in the official cash rate and the major banks would follow regardless of their business pressures are well and truly behind us.
“The problem for the major lenders is that they are trying to keep the holder triad happy - mortgages, deposits and shareholders - as well as dealing with the cost of funds.“
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