The Interest Rate Conundrum

RBA reduces rates causing real interest rates to increase Australian Bank Funding Costs Surging . I warned this could occur in WE SHOULD THANK THE RBA FOR HIGHER INTEREST RATES . What’s concerning is how quickly rates have surged and what impact expected, future interest rates decreases may have on Bank costs. If this trend continues, we will see our Banks retain either part or all of any future RBA rate decreases.    

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