RBA INTEREST RATE RISES DELIVER BANKS $88 BILLION INCOME BONANZA

The twelve interest rate rises by the RBA since May last year have collectively boosted the income of the banks by $88 billion according to Kevin Young, President of Property Club, Australia’s largest independent property club.

Mr Young said that Australians hold over $2.2 Trillion in home loan mortgages and each interest rate rise delivered billions in dollars in additional income to the banks.

“If the RBA increases interest rates by another 0.25 per cent today their income will automatically be boosted by over $5 billion which would be outrageous,” he said.

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“This is because the big bank income bonanza has been at the expense of ordinary mum and dad Australians who had seen their personal income slashed by rising interest rates.

“This is voodoo economics! How is making the big banks richer and ordinary people poorer going to solve our cost of living crisis and reduce inflation quickly at the same time?

The twelve interest rate rises by the RBA since May last year have collectively boosted the income of the banks by $88 billion

Mr Young proposed a more equitable and smarter way to reduce spending in the economy by imposing a special super levy on all income earners.

“It would ensure that the money of ordinary people who put into their superannuation which they can enjoy in retirement rather than handed over to the big banks.

“This proposal would reduce spending across the board rather than only targeting home loan borrowers.

“This failed policy of increasing interest rates has already seen more than

35, 000 fewer rental properties coming onto the rental market over the past year as lending to property investors has been hit due to 12 successive rises in interest rates.

“This has resulted in few rental properties that in turn has driven up rents and fed into inflation.” he said.

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