Banks break silence on rates, for mortgages not deposits

featured image

Daily News | Online News

Morgan Stanley analyst Richard Wiles said the delay or withholding of passing on higher rates to depositors would help banks to maintain their net interest margins as the impact of intense competition to secure new customers continued to hurt the banks.

“However, in the near term, we believe [the impact of competition] will be offset by the benefits of higher interest rates and favourable pricing of shorter-duration term deposits and online savings accounts,” he said.

Macquarie Bank is the only major bank to have increased rates on everyday transaction accounts, but by late on Friday afternoon was yet to make public details of its next rate increase.

Commonwealth Bank of Australia and Westpac Banking Corporation also remained quiet, but are both expected to pass on the full 0.5 of a percentage point rise to borrowers.

Read More
Share on Google Plus
    Blogger Comment
    Facebook Comment


Post a Comment