I think you're right, oppositions jawbone governments to play hardball with the banks and governments jawbone banks not to raise rates beyond the RBA increase but at the end of the day everyone knows the banks will do as they will. If a bank chooses to increase its margin a few extra bps it faces the prospect of losing market share to those who do not.
Well that's the mortgage market anyway.....there doesn't seem to be much healthy competition for small business loans where all of the banks really screw the customer. Would be good if both Opposition and government scrutinised that a bit closer instead of screaming about mortgage rates, which are relatively low in historical terms.
