Government must rein in the banks
THE scale and impact of the recent interest rate hikes by one of our main financial institutions appears to have gone totally unnoticed by our politicians. Presumably they are too busy trying to get themselves re-elected to dare take on the banks who, it appears, are using this pre-election period of government inactivity to inflict what can only be described as savage blows to already burdened mortgage holders.
The result is that the country is facing a period of high inflation fuelled in the main by mortgage rate hikes on top of increases in general and domestic insurance premiums.
And all of this without as much as an eyebrow being raised by the Government or main political parties. Surely if the Government all but owns the banks -- or at least provides guarantees for those institutions in which it doesn't have a stake -- it is incumbent on our political leaders to find the time to engage with the banks and at least set limits on the margins at which money is charged out to borrowers.