Analysts here are speculating on maybe a 50 bp rise, as housing demand is still strong and so is borrowing.
The buying this afternoon was just people covering their short positions, as the falls in relation to interest rates should have been fully factored into the bank's share prices. (It's been a week of down days). With the 1% rise in the ADR's last night, the bouyant US market needs to be factored in. If the U.S. finishes up again (expectation is for a flat day stateside) we should see a upward movement in the banks tomorrow. (Assume no currency impact).
Could see some downward movement if they go with 50 bp tomorrow or weakness if the dollar strengthens.
