The Australian Workers' Union (AWU) blamed on Thursday the Tuesday decision of the Reserve Bank of Australia (RBA) to retain the overnight cash rate at 4.25 per cent for more job losses across Australia. The union also pointed to the carbon tax as another reason why more industries are nervous.

AWU boss Paul Howes said that the RBA decision further strengthened the Australian dollar which placed more pressure on exporters to cut costs, including axing of jobs, or to close plants. Since last week a number of Australian companies such as Alcoa, BHP Billiton, Holden, Toyota, Manildra, Reckitt Benckiser and Thales have announced lay offs.

In the case of Alcoa, which plans to shed 600 jobs, Mr Howes said the aluminium smelter, despite a carbon price, could still be profitable if the Australian currency trades at lower rates such as 104 or 99.

"But when you're sitting at 110 and when there's no signs of its coming down, when the Reserve Bank is basically trying to sign a death warrant on Australian manufacturing industry, yes, these jobs are under threat," The Sydney Morning Herald quoted Mr Howes.

Besides manufacturing firms, the impact of the RBA rate decision would be felt by Australian banks, particularly the big four as thousands of borrowers are planning to bring their business to other lenders with better rates. The government has been encouraging mortgage holders to move banks if their bank would not pass in full RBA key lending rate cuts, by removing mortgage exit fees.

In the case of the Tuesday RBA decision, ANZ Bank hinted it may even increase interest rate, while the National Australia Bank promised to make available a standard variable rate lower than ANZ, Westpac and Commonwealth Bank.

The Australian Bankers Association (ABA) anticipates borrowers being angry at insistence of banks to either retain the current lending rate or even hike it because of their dependence on more expensive overseas funding. However, ABA admits about 30 per cent of homeowners may move their accounts as they seek 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," News.com.au quoted Australian Prime Minister Julia Gillard.

"We encourage people to talk to their banks.... Last year about one in three people switched, and that was the top end of the historical range. And this year could be even higher," ABA Chief Executive Steve Munchenberg conceded.

To worsen the growing consumer disgust with Australian lenders perceived as too greedy, a report released by Veda showed that mortgage enquiries declined for the eighth consecutive quarter which started since the global financial crisis in 2008.

Veda, the leading provider of commercial and consumer data intelligence and insights in Australasia, released a report on Thursday that showed demand for home loans dipped 4.8 per cent while credit card applications tumbled down 10 per cent in the December quarter compared to a year ago.

"Contrary to the usual trend, all states saw demand for credit cards and personal loans retreat from what had been an upward trend throughout 2011, leaving credit demand flat on 2010. As a leading indicator of economic activity and trends, the Index supports other economic data suggesting that consumers are being more circumspect," Veda Head of Consumer Risk Angus Luffman said in a statement.

"To see such a marked reduction in the use of credit by consumers in the period leading up to the Christmas holidays is unusual; the final quarter of the year is typically a time when there is stronger demand from consumers to obtain new credit," Mr Luffman explained.

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