Our divided economy
Many are undoubtedly doing it tough in the face of cost-of-living pressures, but ANZ CEO Shayne Elliott says it's less likely to be those with mortgages than others who can't access finance from banks.
On a day when the RBA kept rates on hold and warned they will probably stay higher for longer, banking giant ANZ posted a $3.6 billion half-year profit result that benefitted from lower-than-expected provisions for bad debts.
That might sound strange, given the prevailing economic story is one of persistent inflation, cost-of-living pressures and a swell of financial distress. But the economy is very hard to read at the moment, and ANZ chief executive Shayne Elliott has a good explanation for why that's the case.
Speaking with Capital Brief after the RBA announcement, Elliott said it was not surprising as he had expected the central bank would wait to assess the inflationary impact of pending tax cuts and any impact from next week’s federal budget before changing its policy settings.
“The last thing they want to be seen doing is whip-sawing in response,” Elliott said. “It doesn’t feel like there’s a burning platform [which would force the RBA’s hand] so let’s wait and see what people do [with the tax cuts]. Do they spend or pay off debt?”
