Surging Money Rates for Aust Banks

Well now here is a predictable outcome for the RBA. Banks in Australia will probably be raising rates without the RBA doing anything. The RBA like the US Fed may have lost control of the shootin match.
We will see over the next month or so.


Well worth reading
Surging Money Rates 10,000 Miles From Fed Flag Warning for RBA

By
Andreea Papuc
and
Stephen Spratt
March 23, 2018, 5:01 AM GMT+10

• ‘Structurally higher’ rates could affect RBA policy outlook
• Rising dollar-funding costs having an impact on Aussie banks

It’s all put funding costs for Australian lenders on track for the biggest monthly rise since 2010, the year the Reserve Bank of Australia last raised its policy rate. Key for market strategists is whether the increase proves to be more than just a quarter-end phenomenon, or starts to accelerate -- forcing banks to decide whether to raise the cost of credit.


“Money is more expensive,” Martin Whetton, senior rates strategist at Australia & New Zealand Banking Group Ltd. in Sydney, said in a phone interview. Banks "can either absorb it or pass it on.”

https://www.bloomberg.com/news/arti...es-10-000-miles-from-fed-flag-warning-for-rba