18 months of rate pain to go, says ANZ

Ian Rogers
The average cost of funding on the wholesale portion of ANZ's book will continue to rise for 18 months, the bank said, in its submission to the Senate banking inquiry.

ANZ said of $100 billion in term funding it still held A$20 billion in funding secured before the global financial crisis.

The bank said that the average cost of wholesale funding will "rise gradually as cheaper pre-GFC debt expires and is refinanced with more expensive debt at today's prices.

"We expect this effect to continue to put pressure on lending margins for at least another 18 months," ANZ wrote.