Major banks 'could hike interest rates'

Mozo

Thursday 26 April 2012

It is the last thing that homeowners and businesses want to hear, but the country's major banks could be lining up increased interest rates in the near future.

Leaders at fund management service provider Macquarie believe that despite the fact the main institutions are set to report sizeable profits for the first half of the year, lending rates will go up.

Most economists are predicting the Reserve Bank of Australia will slash the official cash rate next month, on the back of lower than expected inflation figures.

However, banks such as Westpac, ANZ, Commonwealth Bank and National Australia Bank are expected to ignore this – much to the disbelief of mortgage and business loan customers.

Macquarie analyst Michael Wiblin stated that subdued lending growth will cause the banks to take this action, according to Dow Jones Newswires.

The demand for home loans has been particularly low in recent months – Mr Wiblin added – and the outlook for the sector remains weak.

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Major banks 'could hike interest rates'
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