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Saturday, 20 June 2020

Funding costs

Funding costs

Australia's 3-month bill rates fell to below 0.10 per cent during the week.

That's tracking well below the official cash rate of 0.25 per cent.

Banks are also flush with cash due to lower lending volumes and a surge in deposits.

Excellent graphic via Shane Oliver of AMP:

Source: Shane Oliver, AMP

Credit policies are still pretty tight at the moment, as caution abounds.

But the potential ability to lend at record low rates is there.