Malcolm Turnbull takes credit for ANZ interest rate cut

Font Size:

Prime Minister Malcolm Turnbull is taking credit for an ANZ credit card interest rate cut, claiming it is evidence that his standing committee on economics is working.

The PM claims the rate cut proves that a royal commission into banking and finance is no longer necessary and that his committee has provided real results.

“I am bringing the banks regularly before the house economics committee and they are being held to account for their actions and you are seeing real results,” said Mr Turnbull.

ANZ has cut its credit card interest rate on its platinum card by two per cent, which will cost the bank around $25 million per year.

Not only has the PM taken credit for the rate cut, but Liberal MP Scott Buchholz, who sits on the committee, has effectively used the cut as an advertisement for ANZ.

“[ANZ] have showed commercial courage in this space and leading the charge on dropping their rates first and I would encourage anyone who has got a credit card in Australia if they are not happy with the interest rates they are paying in Australia at the moment, to migrate to the ANZ,” said Mr Buchholz.

The Government remains under pressure to instigate a royal commission into banks, with Labor, the Greens, the Nick Xenophon Team and other independents still in favour of the move.

Although the Coalition seems reticent to commit to a royal commission, there is a possibility that a parliamentary commission of inquiry could be another option.

Mr Buchholz has said that he’ll continue to put pressure on the other three big banks to follow ANZ’s rate cut.

“Pressure was brought about on the banks in that [first] inquiry and again, we will have the banks appearing early next month in the next fortnight in Canberra along with the Australian Banking Association and I will take a similar line of questioning with those banks that haven’t taken the commercial choice to shift their interest rates yet,” said Mr Buchholz.

Consumer watchdog CHOICE described the ANZ cut as “cold comfort” for customers, maintaining that the interest rates on credit cards are still far too high. In fact, the big four banks do not have a single card in the top 20 most competitive rates in the nation.

“They are still toxic products and the big four banks know that,” said CHOICE spokesperson Tom Godfrey. “ANZ is a long way from having the most competitive card on the market.”

Mr Godfrey believes the banks should drop their rates to more reasonable levels below 10 per cent.

Is Malcolm Turnbull clutching at straws? Or are you happy that there are signs that his committee is working? If not, do you still feel that we should have a royal commission into banking?

RELATED LINKS

Financial regulators to face parliamentary hearing

Just eight hours - minus lunch - to sort banking sector problems beggars belief

Review reveals Government banking tribunal isn’t needed

'Experts' advise the Government not to go ahead with a banking tribunal.

Banks still getting away with bad behaviour, committee a “toothless tiger”

What would happen if the big four banks controlled your super?

Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

Contact:
LinkedIn
Email



SPONSORED LINKS

Sign-up to the YourLifeChoices Enewsletter

continue reading

Age Pension

Centrelink Q&A: Is it possible to get two pensions?

Doug wonders if it is legal to claim two pensions while living overseas. Q. DougIs it possible to get two...

Property

Older Australians resist downsizing, preferring home to a move

The housing boom is slowing the rate at which Australians are downsizing, with many older homeowners preferring to stay in...

Brain health

Loss of pleasure and happiness linked to dementia

Those living with a type of dementia that affects younger people can't feel as happy as they did before developing the...

Health

Can coffee cure a headache? Or is it the culprit?

If you do enough research on coffee, specifically caffeine, you could start to believe it’s a wonder drug. Health professionals...

Dinner

Pumpkin, Leek and Spinach Quiche

Looking for a no-fuss quiche recipe? Today’s Pumpkin, Leek and Spinach Quiche can be made with no pastry, which makes...

Lifestyle

Pondering love letter etiquette

The French have a lovely name for a love letter - a billet doux. The translation literally means sweet letter...

Lifestyle

Long-lasting beauty treatments to do at home

If this past year has shown us anything, it's that home pampering should not be overlooked. Going to a salon...

Brain health

Medical focus must extend to pre-clinical dementia

Ivan Koychev, University of Oxford 'One more question', is now a regular parting shot from the son or daughter of...

LOADING MORE ARTICLE...