The industry’s benchmark ABC will report its annual results next week, and analysts at Morgan Stanley expect the nation’s biggest lender to receive a $250 million increase in revenue from net interest due to rising interest rates and bond yields.
Analysts say the CBA should have an even bigger advantage in the current half of December as its “deposit pricing power easily outweighs mortgage competition.”
ABC shares rose 1.3% to $101.80, ANZ shares added 0.3% to $22.78 and Westpac shares rose 0.5% to $21.85.
In addition to its changes to variable interest rates, the CBA announced that it would offer a special 18-month term deposit of 3% and cut rates on four-year fixed-rate mortgages by 1 .6 percentage points to 4.99% for the owner. occupants pay principal and interest. ANZ also offers a 3% interest rate on an 11 month term deposit.
Angus Sullivan, CBA Group Director of Retail Banking, said the lower fixed rate was aimed at customers seeking more certainty in an uncertain interest rate environment.
Macquarie Group also announced on Tuesday that it would raise variable mortgage rates on August 12. After recently launching a campaign to increase its share of the deposit market, Macquarie plans to raise its transaction and savings account rate by 0.5 percentage points to 2.25 percent. hundred.
Reserve Bank Governor Philip Lowe this week raised official interest rates for the fourth consecutive month to 1.85% as the central bank seeks to slow the economy to bring inflation under control .
Amid concerns over the economic cost of aggressive interest rate hikes, financial markets have started betting that even if there will be more RBA rate hikes this year, taking the cash rate to a record high. around 3.25%, the central bank will then change course. and lowering the cash rate to 3% by the end of 2023.
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