Its spreading – this morning the Bank of Queensland lifted rates autonomously from the RBA’s monthly missive and now AMP, lifting its interest only offerings by 40 basis points.
From AFR:
Other lenders are expected to follow as a spike in 30 and 90-day bank bill swap rate (BBSW), a short-term money market benchmark interest rate, increases pressure on their ability to offer competitive lending and attractive fixed rate saving rates.
Add Auswide via Mortgage Business:
The chief financial officer (CFO) of Auswide Bank, Bill Schafer, attributed the lender’s decision to lift interest rates on its mortgage products to the sharp rise in the bank bill swap rate (BBSW).
“Our funding costs have risen significantly in the last four months,” Mr Schafer said.“The BBSW — the 30-day rate and the 90-day rate — has had a large effect on our wholesale funding lines, and they’ve increased by between 30 and 35 points since the beginning of March, so that’s had a substantial effect on our net interest margin.”
The NIM crunch is coming, looking to end what has been a gravy train for the extrmely well supported banking sector:
