Australian Banks Say Lending Costs To Remain High

The resent rate rise in Australia have attracted international attention. The interest rates in Australia are much higher than those in USA and Japan.

"The major banks and regional lenders yesterday raised rates for their variable mortgages by 25 basis points, matching the central bank's quarter percentage-point rate rise, which came into effect on Wednesday. Given significant government support for the sector over the past year in the form of deposit and funding guarantees, banks have been careful to keep politicians onside by keeping rate rises on mortgages in check.

"But rates in less politically sensitive areas such as business loans and credit cards have been rising as banks have sought to protect profit margins," reports The Age.

Short term funding costs and interest rates stay low in Australia. In Austrlia the interest rates have started rise from their 50 years lows. Top four banks of Australia raised their interest rates yesterday by .25 basis points.

Written by Armen Hareyan
HULIQ.com