Posted: June 10th, 2012 | Author: Michael Courtenay | Filed under: Business News | Tags: Australian Economy, Credit, Debt, Glenn Stevens, Household Spending, RBA, Reserve Bank of Australia | Comments Off
Australia’s Reserve Bank chief, Glenn Stevens says Australians are too pessimistic on the state of the country’s economy, Stevens reckons that we should be much more optimistic over the nations prospects.
Speaking at the American Chamber of Commerce in Australia luncheon in South Australia, Stevens described the nations better than expected growth figures as “quite respectable”. The reserve bank chief said that changes in the world economy present challenges that can easily be overcome.
Stevens said Australia is in a good position to tackle possible world recession sparked by the debt woes facing Europe. He said that economic indicators show that Australia has handled the global financial crisis of 2008 well :: Read the full article »»»»
Posted: February 21st, 2012 | Author: Michael Courtenay | Filed under: Business News | Tags: Australia, Australian Banks, Australian Lenders, Bank Fees, Credit, Credit Card, Debt, Mortgage, Mortgage Debt, Societe Generale | Comments Off
Elysse Morgan from ABC reports that new research by one of Europe’s biggest banks suggests that Australian banks are hiking interest rates to protect profit margins, not to cover higher funding costs as they have insisted. But the Australian Bankers’ Association has dismissed the study and says lenders may have to raise their rates again.
The study by Societe Generale shows nearly all funding costs for Australian lenders have fallen in the last six months. Societe Generale’s head of strategy in Asia, Christian Carrillo, says the banks’ claims about rising costs are dubious.
“Research suggests that effectively pretty much every source of funding that they use in terms of domestic deposits, short-term funding onshore, long-term funding onshore, has actually gone down,” Mr Carrillo said. ”There has been some widening in spreads between offshore funding rates and the rates that they use to hedge against, but if you take into account the overall rate they pay to fund overseas, even that has actually come down slightly.” Read the full article »»»»