by Alan Thornhill
Australians are saving more – and that is pushing up both bank costs – and home loan rates.
Sounds strange, doesn’t it?
But Australians are not just saving more.
They are becoming smarter with their money.
They are placing more of it in term deposits, which pay relatively high interest rates.
That, of course, adds to bank costs.
These developments were behind the decision of Australia’s big four banks made last month to raise the rates they charge on home loans, even though the Reserve Bank had left its marker rate on hold in February.
Critics have suggested the banks could have got the money they need, to lend to home owners, more cheaply.
They said this money was available, at low rates, on international markets.
But that’s not what happened.
Indeed figures the Australian Bureau of Statistics published today show that deposits account for 54.3 per cent of bank liabilities, in the December quarter.
The Bureau said that was the, highest level since June 1996 .
See Australian National Accounts: Financial Accounts (cat. no. 5232.0)
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Wednesday December 11
Holden has announced it will stop producing vehicles in Australia in 2017. Toyota likely to follow suit
The Dow Jones index fell 53 points to 15,973
Acting PM Warren Truss writes to Mike Devereux seeking “a clear statement” on Holden’s future
The Federal Treasurer, Joe Hockey, says the Mid-Year Economic and Fiscal Outlook will be released next Tuesday, at the National Press Club.
|Aud To Usd||0.913||N/A||N/A|
|Bhp Blt Fpo||36.180||-0.640||-1.74%|
|Cwlth Bank Fpo||74.500||-0.760||-1.01%|
|Rio Tinto Fpo||65.770||-0.400||-0.60%|
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