Financial analysts have forecasted a booming year for Australian banks in 2023 as they allegedly exploit a loophole in the central bank’s interest rate hiking cycle.
Analysts at the global investment bank Goldman Sachs estimated that Australian banks would see a 20 percent surge in earnings this financial year, with a combined profit of $35.5 billion (US$24.63 billion) for the banking sector, reported The Australian.
The substantial profits derive from the practice of delaying and not passing the increases in the official cash rate to savers in full.
Since May 2022, the Reserve Bank of Australia (RBA) has implemented an aggressive monetary tightening policy, taking the official cash rate from the historic low of 0.1 percent to the current 3.1 percent….