Commonwealth Bank of Australia
(ASX:CBA) CEO Ralph Norris has hinted at a possible rate hike irrespective of any RBA move, as funding costs continue to pressure banks.
According to a Fairfax report Mr Norris told an audience in Sydney yesterday that movements in bank funding costs are impacted by more than just changes in the RBA cash rate.
Mr Norris told media that when you look at current funding costs there is no doubt that rates are going to increase.
He continued to say changes in the RBA cash rate are not driven by wider credit spreads in financial markets, they're not driven by the need for Australian banks to increase the proportion of long-term funding, and they're not driven by increasing competition.
The Federal Government has urged banks not to raise rates beyond the Official Cash Rate which the central bank decided to keep unchanged at 4.5 per cent in October.
The Commonwealth Bank booked a profit of $5.68 billion for the 2010 fiscal year.
