"Is 'growth' in bank loans positive in Australia?" Yes. RBA data...

"Is 'growth' in bank loans positive in Australia?"

Yes. RBA data as of 20 dec.




Hard to have a recession while banks are incentivised to pump out credit to businesses and the consumer.

"Banks in Australia AFAIK do not have a 'deposit base that costs them almost nothing'. They have to fund operations partly from overseas lenders."

From the AFR today....

“Approximately 75 per cent of the deposits that the major banks have are earning 25 basis points or less and that’s staggering when you can walk into a major bank and get 3.7 per cent for three-month money,” Mr Healy said."

"Wholesale funding accounts for about 20 per cent of banks’ overall funding, with the lion’s share of lending funded by deposits"

https://www.copyright link/policy/e...ers face the,of Australia during the pandemic.

If inflation cools rapidily, I bet none of the banks will be screaming for rapid rate cuts. Why would they, when the current dynamics are killing off their small non-bank competitors that do not have large pools of low cost deposits and are thus are dependent on wholesale funding and are much less competitive.

If inflation cools rapidly in the US, the fed will have to admit that if they hold interest rates high for a year, the US banks will keep pumping credit out into the economy, which fuels demand, which will only drag out the inflation mountain passing thru the system.