Major Banks in Australia Face Risks of Borrowers Jumping Ship Due to Rate Hikes
Borrowers may be jumping ship in droves should banks choose to raise rates following the RBA's cash rate hold.
According to News Ltd, Australian Bankers' Association chief executive Steve Munchenberg has conceded that the number of customers switching banks could prove even higher than last year should the majors raise their rates this month.
"Last year about one in three people switched, and that was at the top end of the historical range. This year could be even higher," Munchenberg told News Ltd.
The comments come as speculation mounts that ANZ will move upward on rates when it announces its decision tomorrow. Should ANZ move, the other majors are tipped to follow suit.
Prime Minister Julia Gillard told News Ltd in the event the banks move outside the RBA decision, borrowers should "walk down the road" to find better deals.
"I understand that people get angry with their banks if they don't see proper treatment and fair treatment flowing through to them, and we as a government have made it easier than ever before to take their business, walk down the road and get a better deal," she said.