RBA warns banks not to raise rates again

Australian Bankers' Association chief Steven Munchenberg said banks needed to balance the interests of savers and people borrowing money for houses or running a business.

But in a clear warning to the banks not to lift rates out of cycle again, RBA Assistant Governor Guy Debelle said funding pressures on banks were improving. The gap between the cash rate and funding costs had climbed since the start of the year, but eased “noticeably” in recent weeks, he said.

“If the lower spread is maintained, this should alleviate some of the upwards pressure, relative to the cash rate, on the cost of funding banks’ aggregate loan books,” he said.

Source: Adelaide Advertiser