Australia 'has seen higher levels of term deposit rates'

Australia is seeing higher levels of term deposits, it has been claimed.

This is according to Commonwealth Bank of Australia chief executive Ralph Norris, who spoke in a phone conference concerning the institution’s September quarter results.

An AAP report cited the official as stating the financial centre cannot guarantee that its mortgage rates will not rise above that set by the Reserve Bank of Australia – news that may affect those looking for low interest home loans.

The news provider noted the fact that the big four banks have expressed similar sentiments due to funding pressures.

"If we have to move standard variable above the overnight cash rate then we will have to do that," he commented.

"We’ve seen significantly higher levels of term deposit rates. If you look at wholesale margins, they’re still significantly up over where they were two years ago."

Earlier this week, Westpac published its Housing Finance report, which suggested the low base rate has prompted a "surge" in demand for home loans.

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