And there's one more rate to know about: the Bank Bill Swap Rate, or BBSW.
In the past, it would just say the "cash rate" is such and such , because it knew it could move the rate in the market without any problem. And the BBSW would be roughly the same. My point here is that one key ingredient in that model is open to exploitation – that is, the difference between the cash rate and the cash rate target, and the BBSW.Both were below the RBA cash rate target of 0.35 per cent, after roughly 48 hours of market movements.
In other words, they are each raising what they charge borrowers on their variable mortgage rate products by 0.25 percentage points or 25 basis points. That's higher than the actual increase in the cost of funds which is 18.5 basis points. "You could say they're looking for a cheeky margin expansion there," he says. "And why not? If they can get away with it, good luck to them."
although their profits raised they didn't manage to save like Australians during last year... and now they caching up 🤣🤣🤣
RBA has pulled the liquidity from the market banks need to source funds externally, People take on large personal debt and make it the govt’s problem when rates go up. The greed to profit from home capital growth is the driver here.
'because it can'.
thats when you refinance ....
BBSW is Australian Benchmark. But most of Aus Bank's fund comes from oversea. Have your analysis factor that in? Also have you factor in FX rates? Hedging Losses? Additional provision for losses due an increase interest rate, IR Swap Losses to name a few?
Because they can.
a 2008 recital - that the richers will have amazing love for
I'm а nudе mоdеl, rаtе mу рhоtоs