The bigguns hold back 5bps because:
CBA
“One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review,” said CBA, which is Australia’s biggest home loan lender.
NAB
“Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector.
“The increased competition for deposits is pushing up costs, making it more expensive to fund our lending.”
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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Darn, so if we all borrowed some more instead of saving we’d have a lower rate!