Swan calls on Australian banks to consider families

by Richard Kilner

Story link: Swan calls on Australian banks to consider families

The Australian Treasurer, Wayne Swan, has called on the nation’s banks to consider the financial needs and pressures of families when raising their home loan rates because of the international conditions.

The worldwide difficulties of the credit market has led the National Australia Bank to raise its variable home loan rate to 8.69%, an increase of 12 basis points.

It is predicted that next week will see a number of other financial institutions follow in the National Australia Bank’s footsteps.

In an interview with ABC Radio, Mr Swan said that the rise was due to the sub-prime mortgage crisis in America, but called on other banks to bear in mind the significant financial pressures families face when considering changing their rates.

Swan went on to say that the pressures associated with the cost of living was a matter of concern for the government, adding that the Australian Competition and Consumer Commission had been given the go ahead to investigate recent petrol price rises and to take appropriate action.

The Treasurer also said that the high level of inflation was a parting gift from the previous government, and was adding to the difficulties related to interest rate increases.