Saturday 28 March: SMOKE SIGNALS – Smashing interest rates

Westpac’s new housing loan interest rate of 9.95% (about 10%) is a classic example of commercial banks and the government being not very successful in their bid to curtail our economic predicament, says a signaller.

“The more our commercial banks try to reduce interest rates as a result of market pressure and community criticism, the more they get smashed by overseas bank lending rates, including their own branches in Australia and New Zealand. They can’t beat the 5 percent mark in Australia or New Zealand.

Most wholesale cash rates are about 2 to 3.5%, even Chinese are offering 2 percent so how do they arrive at 9.95%?

“Why not give us a whole percentage slash, not just a fractional slash? New Zealand or Australian Cook Islanders will cry when they see your advertisement.

Come on koe, give Cook Islanders a fair go. Cut the interest rate by 1 or 2 percent, not just 0.1% to 0.03%.

“For our government, wakey, wakey! Our people and businesses are suffering because a big part of the economic problems are created by government’s fiscal and economic policies as well as the bank’s lending policies.

“You have a social responsibility to our people so be real.”