Jim Chalmers delivers another warning to bank bosses to pass on higher interest rates to savers, as volume growth likely to slow.
, leading to more questions about bank earnings in a tougher environment as the treasurer puts pressure on them to pass on the benefits to depositors.
After asking bank chiefs in July to make sure they looked after savers, Dr Chalmers said it was “really disappointing” that higher interest rates were not necessarily being passed on and he pledged to raise this with the banks. Next week, Commonwealth Bank of Australia will offer the first glimpse into how the rate increases have translated into bank margins. The figures for May and June will be keenly scrutinised to assess the impact of the RBA’s first two increases in the cash rate in more than a decade.Analysts have pointed to the gains that the big four continue to bank because of cheap deposit-funding, which could come under pressure as the cycle turns.
He said the banks also needed to refinance about $20 billion to $50 billion of the RBA’s cheap term funding facility and $60 billion to 75 billion of wholesale funding in the next three years, which would lead them to “compete more aggressively for deposits”, meaning the current benefits are temporary., and Citi analyst Brendan Sproules says “the speed of this upward rates cycle is unprecedented, and so might be the eventual impact of the housing market”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Treasurer takes a swipe at banks ahead of predicted interest rate riseThe rising cost of living pressures are set to worsen for millions of Australians with the Reserve Bank expected to lift the cash rate for a fourth consecutive time as Jim Chalmers slammed banks for a 'disappointing' move.
Read more »
Another rate rise expected to pile on mortgage pain today'This is about a difficult day for Australians with a mortgage.' Treasurer Jim Chalmers says his job is to alleviate some of the inflationary pressures we are seeing in the economy, as experts predict a fourth consecutive rate hike today. 9News MORE:
Read more »
RBA rate rises tipped to slow bank mortgage growthAs interest rates climb, analysts predict the big banks will face slower growth in their lucrative mortgage portfolios | clancyyeates
Read more »
Interest rates are rising because we're told households can manage it, but the data suggests otherwiseThe RBA's decision on how high to lift the cash rate will impact millions of Australians and have flow-on effects for the economy. But it seems there's no official clarity on how well we're actually placed to manage the change, writes David Taylor.
Read more »
RBA to decide another rate riseThe Reserve Bank of Australia will decide today if it will lift interest rate once again.
Read more »