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Banks drive up inflation

Discussion in 'The Economy' started by Tropo, 24th Jul, 2008.

  1. Tropo

    Tropo Well-Known Member

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    24/07/08
    Banks drive up inflation

    Bank fees, charges and interest rates are driving up inflation says economists. The latest figures from the ABS mean the chances of an interest rate cut by the RBA before Christmas are virtually zero.
    Inflation rose to 1.5 per cent for the June quarter and 4.5 per cent for the year to June according to figures released yesterday. Financial services costs rose ten per cent in the quarter, more than any other sector including food and petrol.
    The treasurer Wayne Swan said banking costs were a major contributor to inflation.
    The Australian bankers association said banks were just passing on additional costs caused by the global credit crunch.

    Source: Herald Sun
     
  2. Billv

    Billv Getting there

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    Tropo

    Yeah right, they are only passing on additional costs....:rolleyes:

    then why are their profits increasing in a nearly zero growth market?

    I think they are ripping us off just like the petrol companies do....:eek:

    I think it's time to bring back regulation.

    Cheers
     
  3. Thudd

    Thudd Well-Known Member

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    "Passing on additional costs" = "It doesn't matter how badly we run our business because you will end up paying for it"
     
  4. Tropo

    Tropo Well-Known Member

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    Last edited by a moderator: 17th Sep, 2016