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Banks likely to keep future rate cuts

10/08/2012

ANZ and Westpac executives yesterday said there had been no let-up in offshore turbulence or competition for deposits. The predictions suggest banks are unlikely to pass on any further official interest rate cuts in full.

ANZ's deputy chief, Graham Hodges, said the biggest pressure on its cost of funds was the fierce competition for deposits, which continued to heat up.

Banks obtain about half their funding from deposits, but are looking to lift this to 60 per cent, forcing them to offer higher interest rates to savers.

Source: Sydney Morning Herald



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