Banking regulators need to better their jobs

Comments on Alan Wood “Interest rates on their way up”, 17/09/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/interest_rates_on_their_way_up/

While it is understandable that "from 1999 to 2007, the official rate and variable mortgage rates moved in lockstep", it is also puzzling that why the low international costs of funding were not much reflected in lower costs of borrowing for consumers.

We have experienced incomplete pass through of the RBA's cuts to official interest rates in the past year or so. But we did not see the reverse of that earlier in the past decade.

The relevant regulators should closely monitor what the banks in Australia are doing in terms of margins, taking into account of costs of funding in international capital market.

It does not appear that they have done a good job. They need to get on top of their jobs.