Banks have sliced interest rates on term deposits as financial markets place growing bets on a cut in official interest rates, further squeezing the paltry returns available to savers.
Banks typically set deposit rates according to their need for funding, and the competitive conditions in the market. For example, Westpac said it "continually" reviewed all of its deposit interest rates. Mr Murray noted there had also been a "material" change in the 90-day bank bill swap rate — a key inter-bank funding rate — since the start of the year, from more than 200 basis points to about 170 basis points. He suggested the decline in funding costs could lead to interest rate cuts on loans.
clancyyeates Yes because the banks no longer have access to as much funding as they did. Talk of cuts to staff are evidence that income is a bit light on the ground. If you do not have the large volume of loans/mortgages to sell to obtain funding then your income is going to be affected.
clancyyeates It’s called “ Central bank extortion “
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