"Sir John Howard" <pmjwhowardj@[EMAIL PROTECTED]
> wrote in message
news:ba0ff2a3-5083-4441-88f6-3c2615b47d9a@[EMAIL PROTECTED]
> Adelaide Bank ups rates by 0.4%
>
>
http://business.smh.com.au/adelaide-bank-ups-rates-by-04/20080305-1x3u.html
>
> Adelaide Bank, which was acquired by Bendigo Bank, has increased the
> cost of wholesale funds it supplies to mortgage brokers and
> originators by 40 basis points, or 0.4 per cent.
>
> The rise, which is above the 0.25 per cent rate rise announced by the
> Reserve Bank yesterday, is expected to provide the yard-stick for rate
> rise increases across the financial sector this month including
> Australia's biggest banks.
>
> With credit spreads about 60 basis points higher than just six months
> ago, the banks are almost certain to lift interest rates on mortgages,
> credit cards and personal and business loans by as much as 0.2
> percentage points more than the latest increase in the official rate.
>
> The latest increase is yet to apply to to either Bendigo or Adelaide
> Banks' retail home loans.
>
> "Our delivered cost of wholesale funds has increased by 40 basis
> points, or 15 basis points, above the RBA," an Adelaide Bank spokesman
> told AAP.
>
> "That's obviously in response to global funding markets.
>
> "It's not a decision we take lightly and we do it with consideration
> for all of our stakeholders, including our customers and our partners
> and our shareholders."
>
> The decision to lift the cost of wholesale funds was taken yesterday
> afternoon.
>
> Neither of the banks - which are due to formalise their name change to
> Bendigo and Adelaide Bank at the end of this month - expects to raise
> their retail home loan rate beyond that of the central bank increase.
>
> "It hasn't happened yet but you wouldn't expect anything to happen in
> excess of the RBA (increase)," the spokesman said.
>
> The wholesale funds affected by the increase account for around 30 per
> cent, or roughly $5.5 billion, of Adelaide's loan book.
>
> The wholesale funds are supplied to around 35 mortgage brokers and
> originators as so-called 'while label" loans.
>
> The major banks are yet to announce their response to the latest rate
> rise.
>
> However there is strong speculation and some hints they may go higher
> than the 25 basis point rise in the official cash rate.
>
> ANZ Bank yesterday hinted it was considering a rise of more than 25
> basis points.
>
> "It's inevitable there'll be some flow-on to mortgage and other
> lending rates," an ANZ spokesperson said.
>
> "And we have the added consideration of the ongoing pressures in
> wholesale markets, which have raised funding costs (for banks)
> further."
>
> Higher inter-bank borrowing costs caused by the global credit crunch
> are making money more expensive for banks and putting pressure on
> their profit margins.
>
> The other three major banks have said their rates were under review.
>
> When the RBA lifted the official cash rate by 25 basis points in
> February, CBA and NAB lifted rates on their variable rate home loans
> by 30 basis points and 29 basis points respectively. The other major
> banks matched the official rise.
>
> The major banks also lifted rates by between 10 and 20 basis points in
> January, despite no action from the RBA, citing higher funding costs.
>
> CBA and Westpac currently have a standard variable home loan rate of
> 8.97 per cent. NAB's rate is 8.98 per cent and ANZ's rate is 9.02 per
> cent.
>
> ----------------------------
>
> No wonder FlangesBum loves to ream KRudd! ha ha ha!
I predicted that banks would give KRudd and Swan the forks yet again.
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