Looks like rates are going up

JP Morgan analyst Scott Manning said CBA "may be positioning for an out-of-cycle rate rise", but that it was too soon to say when rates would go up, and to what degree
uh huh.

and to top that off, how can their cost of borrowing be going up when no matter where they source it from, it's consistently cheaper than australia? are they using their own 19.99% credit cards?
 
Think cost of AUD funds from offshore sources are driven off domestic cash rates (ie AUD cash rates) + X bps to reflect forex risk, esp when risk is an AUD depreciation?
 
both cba and wbc might breal lock step

ANZ and NAB less likely

Id rather a solvent lender with a slightly higher rate, than a lender that cant pay its dues ...................they will generally only break step if they feel they need to

ta
rolf
 
NAB r keen to go but my guess is that won't do it until next rba move, they will probably throw on 10-15 points of their own when rba moves next.

never had a fixed loan in my life but thinking some of those under 7% rates for 3 years might be worth it on some equity accessing i am currently doing
 
Last edited:
Somehow I dont think the fear of bankruptcy is the main driver behind banks in Australia raising rates.. maintaining their margins is a far cry from using the word "solvent" in describing their actions..

both cba and wbc might breal lock step
Id rather a solvent lender with a slightly higher rate, than a lender that cant pay its dues
rolf
 
Somehow I dont think the fear of bankruptcy is the main driver behind banks in Australia raising rates.. maintaining their margins is a far cry from using the word "solvent" in describing their actions..
Bankrupt and insolvent arent the same.............one is a cashflow issue , the other is an asset issue.

While I hear what you are saying, the best example of my comment is perhaps the old RAMS, now RHG.

Most of the banks have other income streams and arent as exposed to JUST mortgage lending as Old Rams was.

The good thing is that most borrowers have some form of choice, so let the markets decide, and the borrowers can vote with their feet.

The lock step break didnt hurt Wesuck too much (according to their blurb anyway )

ta
rolf
 
Top