We actually saw it coming I'm not kidding. Variable rate will at best be put on hold, if not rise to match the higher costs of borrowing and funding due to rising uncertainties and risks from the gravity of European debt ridden economies and the tenuous US "recovery".
http://www.theage.com.au/national/home-owners-pay-for-the-banks-pain-20120210-1smgz.html
Getting it right is not something to boast of. Nevertheless, Australian borrowers would have expected the Reserve Bank to have some inkling even if it had not forewarned of possible rate rises that would cause additional pain to households saddled with mortgages. When many of us including the experienced and savvy investors have suffered severe bashing in the volatile markets since the Global Financial Crisis, suffice to say, an ability to envision beyond six months in financial planning is no mean feat.
Instead of explaining the gulf between the Reserve Bank's anticipated rate cut, which is out of sync with the market forces, and impending mortgage rate rises, Treasurer Wayne Swan has capitalised on the populist bank bashing bandwagon to mask bureaucrats' missed targets.
http://www.businessspectator.com.au/bs.nsf/Article/Wayne-Swan-Australian-banks-funding-costs-pd20120131-R28CV?OpenDocument&src=mp
Indeed, bank bashing has overshot and exceeded reasonable limits - "fever pitch" as some analysts call it. There are always two sides of the story. Blaming another to reap political capital or higher profits would not benefit the common folks. A fairer and more intelligent strategy might.
http://www.theaustralian.com.au/news/opinion/economy-needs-smarter-strategy-than-bank-bashing/story-e6frg71x-1226265118327
http://www.theaustralian.com.au/news/opinion/bank-bashing-is-fraught-with-unknown-consequences/story-fn558imw-1226267144306
http://www.smh.com.au/business/banks-deep-pockets-short-arms-and-shorter-memories-20120210-1sm17.html
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