Kiwibank next to move rates

So it is necessary to raise rates because???
Please choose from the following options:
1.All our executives would like to buy a second yacht so we need to raise their already exhorbitant salaries so they can go ahead with their plans
2.We will soon release a totally confusing , muddled statement referring to world markets, increased borrowing costs, and deposits to loans ratios to persuade the basically stupid public that this move was absolutely necessary for the banks survival.
3. We don't have to justify our decisions to create more profits- you need us, we don't need you.

Hi DT!

Option 4? Because banks are businesses that only exist to make money for their shareholders (and executives), and are under no obligation, nor feel any particular need, to keep interest rates down for the sake of their customers. It's not that it's "necessary" to raise rates, they raise them simply because they can, in the expectation that they will skim more money from their customers.

Don't Landlords operate on similar principles, raising rents according to what is happening in the market? Why keep your rents significantly lower than the rest of the market?

Fortunately, of course, they (banks) do need us. Without their customers, they have no income, so they are constantly in a juggling act between losing customers and losing potential income... I think ANZ has been quite clever there. They have acquired lots of customers by being competitive, but now that it's harder to switch banks, (thanks to LVR Rules), let's see what happens!