Based on short term money markets a major source of australian bank funding – short term rates, have increased by about .75% just since early Jan..
About .25% was recouped by the banks when they hiked their rates independently of RBA.. But it looks like there is more pressure on them to raise again substantially in addition to any March rise… possibly up to .45% in addition to March rise..
On another note, Macquarie Banks CDS (credit default swaps have risen by a whopping 190 points).. meaning for them to secure their bonds in wholesale market and attain higher rating they are having to pay a massive 1.9% more..
Yikes i thought Australia was going to be relatively immune.
About .25% was recouped by the banks when they hiked their rates independently of RBA.. But it looks like there is more pressure on them to raise again substantially in addition to any March rise… possibly up to .45% in addition to March rise..
On another note, Macquarie Banks CDS (credit default swaps have risen by a whopping 190 points).. meaning for them to secure their bonds in wholesale market and attain higher rating they are having to pay a massive 1.9% more..
Yikes i thought Australia was going to be relatively immune.