Slow day today. I can hardly raise an eyebrow at ANZ cutting 20bps this afternoon and here’s the reasoning:
“Recent stability in wholesale funding markets has been offset by the impact of intense competition for retail deposits as banks seek to improve their funding mix in response to market and regulatory pressures. While this increase in competition is benefiting the majority of our customers through historically high deposit rates relative to the cash rate, last week’s decision from the RBA has provided some scope to once again reduce our variable lending rates”.
It’s pretty clear the banks can make up any excuse they like now. There is no funding pressure any more, though it will no doubt return at some point. Might as well make hay!
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