Latest / Early Edition with Ryan Bridge / Mark Wilshire: Co-operative Bank CEO ahead of the Official Cash Rate announcement

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Mark Wilshire: Co-operative Bank CEO ahead of the Official Cash Rate announcement · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: So two weeks ago, markets are pricing in a fifty
• 0:02
  Speaker 1: percent chance that the OCO would actually be hike twenty
• 0:05
  Speaker 1: five basis points today now that is not the prediction
• 0:09
  Speaker 1: at all. In fact, the markets aren't predicting that will
• 0:11
  Speaker 1: happen until September October, partial for July, but more likely
• 0:15
  Speaker 1: September October, if you're to believe them, given they were
• 0:18
  Speaker 1: saying something quite different two weeks ago. Mark Wiltshire is
• 0:22
  Speaker 1: Copperate of Banks CEO with me this morning, get a.
• 0:23
  Speaker 2: Mark, good morning.
• 0:25
  Speaker 1: Run When do you think they're going to start high?
• 0:27
  Speaker 1: Because I mean, I don't think anyone thinks is going
• 0:28
  Speaker 1: to happen today. But when do you reckon they'll start hiking?
• 0:31
  Speaker 2: I think the likelihood is September that as you say today,
• 0:36
  Speaker 2: people are expecting the Reserve Bank to stay on hold,
• 0:40
  Speaker 2: but it's really all about the outlock. This is the
• 0:42
  Speaker 2: first big monthary policy statement since the Middle East conflict,
• 0:46
  Speaker 2: so we'll see their outlook there, which will be really interesting.
• 0:49
  Speaker 2: But September, I think is the is the hot back.
• 0:52
  Speaker 1: What's been happening with you all fixed rates? Because most
• 0:54
  Speaker 1: the average two year specials up almost percent since the
• 0:57
  Speaker 1: end of last year. On average.
• 1:00
  Speaker 2: Yeah, so you know, we've kept our rates pretty competitive actually,
• 1:03
  Speaker 2: So if you look at the one year rate, you
• 1:07
  Speaker 2: know we've still got in the fours four sixty five.
• 1:09
  Speaker 2: We've kept that pretty law. That hasn't moved a lot
• 1:12
  Speaker 2: actually since the start of the year. And then you've
• 1:15
  Speaker 2: got your two year. Most people are picking one or
• 1:17
  Speaker 2: two year two in the low five. So that's where
• 1:20
  Speaker 2: people are going at the moment, and some people splitting
• 1:24
  Speaker 2: across those couple of terms because of course you can
• 1:26
  Speaker 2: do that as well. Number yep.
• 1:28
  Speaker 1: Oh sorry, continue mate, No, I was.
• 1:30
  Speaker 2: Just going to say, so, you know, I think I
• 1:31
  Speaker 2: think banks have kept a bit of a lid on
• 1:33
  Speaker 2: this and it's a bit of uncertainty around. So yeah,
• 1:37
  Speaker 2: I think those rates are still pretty competitive in those
• 1:38
  Speaker 2: fixed rates. And then of course we've got people want
• 1:41
  Speaker 2: to keep a chunk on floating as well. People like
• 1:43
  Speaker 2: a reflexibility. We've got that four nine nine the lowest
• 1:46
  Speaker 2: sparable rate out there.
• 1:47
  Speaker 1: Mark. We had some numbers out yesterday which were interesting
• 1:49
  Speaker 1: about people switching banks and people switching banks with smaller
• 1:53
  Speaker 1: loan balances. We won't know until Friday when the RBNZ
• 1:56
  Speaker 1: releases their dashboard, but are you seeing Are you the
• 1:58
  Speaker 1: benefactor of any of that switching that's happening.
• 2:02
  Speaker 2: Well, we like to put ourselves out there as a
• 2:05
  Speaker 2: bank that's a New Zealand choice, and so we do
• 2:09
  Speaker 2: try and compete hardly switching customers. What we really like
• 2:12
  Speaker 2: is people to move themselves across entirely as well, and
• 2:16
  Speaker 2: it's a lot easier than people often think with some
• 2:18
  Speaker 2: of the protocols we've got. So there's a lot of
• 2:21
  Speaker 2: mortgage switching, but what we really like is to get
• 2:23
  Speaker 2: the whole customer across and really look after them.
• 2:25
  Speaker 1: What's your feeling about where this country is that we're
• 2:28
  Speaker 1: in a recovery. We knew that it was happening and
• 2:31
  Speaker 1: then we had the Iran situation. I don't feel like
• 2:34
  Speaker 1: it's quite as bad as what perhaps we thought it
• 2:36
  Speaker 1: might be at the beginning of all of this. What
• 2:38
  Speaker 1: do you reckon?
• 2:39
  Speaker 2: I think it's pretty uncertain this way i'd characterize it.
• 2:42
  Speaker 2: So it's going to be interesting today to get the
• 2:44
  Speaker 2: outlook from the Reserve Bank and then tomorrow with the budget,
• 2:48
  Speaker 2: expecting that to be a pretty spending constrained budget, a
• 2:51
  Speaker 2: bit of belt tightening, but it'd be good to see
• 2:54
  Speaker 2: us get back to growth. The underlying fundamentals were looking
• 2:57
  Speaker 2: pretty good around December January, so it'd be good to
• 3:00
  Speaker 2: start to see some of this uncertainty get removed and
• 3:03
  Speaker 2: get back to growth. I think it's still pretty touchy
• 3:06
  Speaker 2: out there as well. I describe it pretty delicate and
• 3:09
  Speaker 2: pretty interesting to see today that commentary from the Reserve
• 3:11
  Speaker 2: Bank will be really critical.
• 3:12
  Speaker 1: Mark wiltchip co Op Bank's CEO. Nice to have you
• 3:15
  Speaker 1: on the program. As always, for.
• 3:17
  Speaker 2: More from Early Edition with Ryan Bridge, listen live to
• 3:20
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• 3:20
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• 3:24
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