National Australia Bank CEO Cameron Clyne hinted that the bank was open to lifting its variable interest rates once more. In an
interview with Melbourne radio station 3AW Clyne said that rates would "move around" but said NAB would be the "lowest", meaning it would have the lowest home loan rates of major banks.
Clyne said that he was frustrated with aspects of the debate around interest rates and thge cost of bank funding in Australia.
''I can understand the average person being frustrated because we have this debate every month and it doesn't seem to go anywhere.
''I'm quite happy to have the debate that banks should have lower profits as long as that debate says what the implications of that are in terms of dividends and the availability of credit.''
The Reserve Bank of Australia yesterday wrote in the minutes of its monetary policy meeting earlier this month that the significant fall in the "relative cost" of wholesale funding since the start of the year "would help to alleviate the pressure of higher funding costs in coming months."
The RBA also noted the material rise in the cost of banks' term deposits relative to the cash rate.