ANZ warns of another rate rise as cost pressure continues

ANZ Bank warned of more unilateral interest rate increases as funding markets remain fragile and could blow out again.

Phil Chronican, ANZ chief executive for Australia, blamed higher funding costs and warned that volatile markets remained hostage to the bailout of Greece.

ANZ's move to lift mortgage rates outside the Reserve Bank of Australia's cycle, after the RBA board decided to keep the cash rate at 4.25 per cent on Tuesday, followed its decision in December to make pricing decisions on the second Friday of each month.

The controversial move reflected the industry's long-held position that movements in deposit and wholesale funding costs were the main drivers of bank interest-rate policy, not the Reserve Bank's manipulation of the cash rate.

ANZ found support for its position on elevated funding costs in the Reserve Bank's quarterly statement on monetary policy, which was released yesterday.

It said bank debt markets were "particularly dislocated" in the latter part of last year, partly reflecting concerns about the European banking system.

For the source of this story, click here.

Also Read

Improved lending to MSMEs needed: central banker

Taiwanese banks' loans to SMEs reach $314.57b in September

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit