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ANZ chief executive Mike Smith has signalled that borrowers are unlikely to see much reduction in home loan rates should the RBA cut the official cash rate again.
"Every little bit of stress that we can remove from our borrower, that's got to be good for us – it will reduce the potential bad debt level," Mr Smith said during an interview on the ABC's Inside Business program, The Australian reported today.
"However, we also have to realise that the official rate from the RBA has absolutely no correlation to our funding rate and where we get our funding," he said.
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Mr Smith’s comments echo remarks from NAB chief Cameron Clyne last week that the official cash rate represented only “a very small component” of its funding costs.
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