Banks To Match Rise But Warn of Increases
SMH has reported that the Banks have all aligned themselves with yesterday’s RBA 0.25% interest rate increase, but strongly warn that the increasing cost of funds may cause them to rise above the boards decisions in the future. Circumstances surrounding Bank profits reflected Tresurer Wayne Swans comments warning banks previously to not raise rates above the RBA. The Banks state the cost of funds leads them to raise rates to cover costs to what they consider justified, but reported quarterly profits reflect a different story.
Simon Reibelt from Oasis Home Loans Northern Beaches advised that customers who were feeling the increasing pressure from rates rises to look outside major banks and lenders for great deals as wholesale funds avenues became stronger.