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.

Govt warns against further rate hikes

Staff Reporter 1 minute read

Treasurer Wayne Swan has taken a pre-emptive shot at lenders, telling Parliament yesterday that the removal of the wholesale funding guarantee would not justify any rate rises outside those made by the Reserve Bank.

“The Australian people won’t tolerate any bank abusing their place in the Australian economy because of their strength,” Mr Swan said.

While some lenders, including the Bank of Queensland (BoQ), have criticised the government’s decision to remove the wholesale funding guarantee, Mr Swan was unapologetic and said the move was a testament to the overall strength of the economy.

BoQ’s chief executive David Liddy yesterday condemned the government’s decision to remove the guarantee and warned it could result in a battle for deposits.

“There will certainly be a grab for retail funding,” Mr Liddy told The Australian Financial Review.

“While the banks maintain higher funding costs, part of that will be passed on. It wouldn’t surprise me if there was movement outside of the cash rates.”

Govt warns against further rate hikes
default
TheAdviser logo
default

 

more from the adviser
ASIC TA ASIC to update ACL process following security breach

The financial services regulator is working on “alternative arr...

money au ta Lenders extend cashback offers

Several lenders and their subsidiaries have extended their cashba...

ren wong N1 pivots to become SME lender

Diversified broking and non-bank lending group N1 Holdings has an...

FROM THE WEB