H Guys,
Appears the insider money is on the ANZ being the first to lift rates independent of the RBA, but the consensus is the others will all follow suit. With the cost of funding still at much more expensive levels than pre-crisis it makes sense they'll start to try and cover this at some point and not subsidise their resi book with their commercial book.
Braced for the shockwaves
Anyone else care to speculate on who or when? If the banks themselves are pondering this decision then it can't be too far off...
Cheers,
Michael
Appears the insider money is on the ANZ being the first to lift rates independent of the RBA, but the consensus is the others will all follow suit. With the cost of funding still at much more expensive levels than pre-crisis it makes sense they'll start to try and cover this at some point and not subsidise their resi book with their commercial book.
Braced for the shockwaves
Robert Gottliebsen said:These older low-interest-rate loans will be maturing right up until 2012 and it means that the cost of overseas funding for the local banks is going to continue to rise. At present, some banks are finding it cheaper to borrow offshore than to raise deposits in Australia because of fierce competition in local bank deposit rates.
The bankers speculate on which Australian bank will be first to put their interest rates up independent of the Reserve Bank to reflect these higher borrowing costs. The betting is on the ANZ, but no one can be sure. Most will follow the leader.
Anyone else care to speculate on who or when? If the banks themselves are pondering this decision then it can't be too far off...
Cheers,
Michael