Understood, but they've got all the leverage, unfortunately. In countries like Australia, it's essentially impossible to get a fixed rate mortgage (for the life of the mortgage), when it would probably has been a great deal a few years ago; banks have all the leverage to dictate the terms.
With variable-rate mortgages, banks can insulate themselves from inflation risks, which they themselves create.
With variable-rate mortgages, banks can insulate themselves from inflation risks, which they themselves create.