Banks drive up inflation

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

Tropo

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

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....

I think it's time to bring back regulation.

Cheers

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

"I think it's time to bring back regulation".

BV,

...it seems that hiring those guys may be a better option...