Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Financial crisis to keep lending rates high

Staff Reporter 2 minute read

Home lending rates could remain unchanged despite speculation that the RBA could cut rates by up to 50 basis points next week due to the meltdown in financial markets over the past weeks.

Lenders have recently been hit by volatile funding costs and despite the strong domestic banking system, the deteriorating global financial situation poses a major threat to the Australian financial sector.

Speaking on Brisbane radio this morning, federal treasurer Wayne Swan, said the unusual events in world financial markets would make banks’ decisions to pass on rate cuts more complicated.

“What we’ve got here is a substantial event in world financial markets that is pushing up rates around the world and, of course, that will impact here,” he said.

In the normal course of events, Mr Swan said any RBA rate cut should be passed on by the banks – as he’s long insisted – however, “in the situation we're in at the moment, it is much more complicated,” he said.

Advertisement
Advertisement

Published: 01-10-08

What's more important for Australia right now: lenders sustaining profitability or passing cuts to borrowers? COMMENT HERE

Today's other news


Financial crisis to keep lending rates high
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
question mark 850 Brokers reveal which lenders are leading the way

The results are in for the Third-Party Lending Report 2020, revea...

board room office ta Lender revamps broker team

A low-deposit mortgage lender has announced changes to its third-...

build SMEs showing greater resilience to COVID-19

Businesses with an annual turnover of less than $200,000 have far...

FROM THE WEB