ANZ chief Mike Smith has warned of further “funding pressures” that may lead to more out-of-cycle increases to mortgage rates.
“The Reserve Bank cash rate is not an accurate reflection of the bank’s true costs,” Mr Smith said.
“Bank funding costs are continuing to rise as the deepening economic and financial crisis in Europe causes dislocation and volatility in global markets, although prospects are brighter in the US. And, frankly, politics isn’t helping. We need to bring more focus to the long-term opportunities and challenges facing Australia rather than short-term point scoring.”
Source: Herald Sun
