Statements
Tas farmers welcome rate cut, as long as banks pass it on
Tasmanian farmers today welcomed the RBA decision to reduce interest rates by a further 0.25 percent. However, the Tasmanian Farmers and Graziers Association said the cut would be devalued if banks did not pass it on in full to borrowers.
“That didn’t happen with the 0.75 per cent total cut in 2012/13,” TFGA chief executive Jan Davis said today. “At best the banks cut rates by 0.65 per cent and at worst it was 0.40 per cent.”
“That is unjust. It is tantamount to profiteering,” Ms Davis said.
According to 2012 statistics, average farm debt in Tasmania grew from $244,170 in 2010 to $326,000 in 2012.
“A cut in interest rate cuts is meant to ease the pain of doing business, to encourage entrepreneurs to invest in their businesses, to reduce the price of borrowing money. It loses its attraction if the banks siphon off the benefits in these very tough times.” Ms Davis said.
TFGA chief executive Jan Davis