The RBA may have decided to keep interest rates on hold, but that doesn’t mean the banks will, according to MFAA chief executive officer Phil Naylor.
Yesterday, the Reserve Bank of Australia left the official cash rate on hold at 4.5 per cent for the fourth consecutive month.
But while uncertainty surrounding the global economic outlook forced the RBA to leave rates unchanged, the same does not necessarily apply to Australia’s major lenders.
“Some of Australia’s biggest lenders said before the federal election that they faced significant funding pressures which could force them to lift rates above any movements made by the Reserve Bank,” Mr Naylor told The Adviser.
“Whether or not they will raise rates above the RBA will obviously be determined over the next few days. But I wouldn’t be surprised if they do.”
The last time the majors raised interest rates out of step with the RBA was in December 2009, when Westpac, ANZ and CBA all moved interest rates above and beyond the RBA’s 25 basis point increase.
NAB was the only bank to toe the RBA line.
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