NSW Premier Dominic Perrottet criticises big banks over passing on rate rises

On a $500,000 loan over 30 years, yesterday’s hike will mean the average borrower will need to find an additional $81 to service their monthly repayments.

ANZ and NAB have already said they will pass on the rate rise for customers from February 17.

But Perrottet criticised the swiftness of the decision.

“What we’ve seen over the last period of time is, every time the Reserve Bank increases rates, the banks are very quick to raise rates on their customers,” he told Today.

“During some of the darkest days in the pandemic, when the Reserve Bank was cutting rates, only on one occasion did the banks pass that rate cut on in full.

“They’re very quick to raise rates, but not very quick to cut them.”

Perrottet said NSW residents were under pressure, with family budgets being stretched thin.

He called on banks to look after their customers – and on the federal government to intervene and cut “red tape and regulation”.

“They’re the ones that run the economics of the country,” he said.