Any halfwit should have deciphered the writing on the wall that the big banks had no sane choice but to pass on in full all of the Reserve Bank of Australia’s first rate cut in years notwithstanding the intense financial pressures they face.
The Conservative Party, while hesitant to welcome further interest rate cuts that have the potential to overheat the economy, still believes the big four should have passed on the first rate cut in full.
The Australian Financial Review reports, that was clearly too much to ask of our “too-big-to-fail”.
Treasurer Josh Frydenberg (“J-Fry” to his mates) personally met three of the major bank bosses, and called the chairman of the fourth, before the RBA’s board meeting to ram home the message that he and Prime Minister Scott Morrison expected lending rates to drop by a full 25 basis points. And that was not negotiable for these explicitly and implicitly government-guaranteed beasts.