According to Westpac, a mortgage is like a banana smoothie, and that’s why they had to jack up all their mortgage rates by 45 basis points when the RBA only raised by 25 points. They even made a video to explain it.
Now, I don’t know about you… but I’d go bananas if the Reserve Banana lifted its base banana rate by 25 basis points, and then my local banana smoothie shop decided to take an extra 20 basis points off the top of my banana smoothie because they couldn’t borrow bananas as cheaply as the other banana smoothie shops. Aussie families are already struggling to afford their monthly banana smoothie, and Westpac now has the most expensive banana smoothies of any of the big four banana smoothie shops. I reckon people will start going elsewhere for their banana smoothies, because Westpac has a pretty serious banana problem right now - this is the sort of behaviour you’d expect from a banana republic.