Banks could raise rates independently again

NAB’s chief economist Alan Oster said funding costs are starting to rise once more, which could force Australia’s banks to move their rates well above the official cash rate.

“What’s happening now is everyone is competing for deposits in the local market. So you have banks like UBank offering rates way above the cash rate, which is really unusual,” he said.

“So, in that vein, depositors are getting a good deal, but we are seeing funding costs rising a little bit again.”

Source: The Adviser