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Mark Wilkshire: Co-Operative Bank CEO on inflation, signals fixed mortgage rate hikes coming ‘pretty soon’ · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Four point one percent. That's inflation for the year to dune,
• 0:02
  Speaker 1: petrol up twenty eight percent, diesel up seventy seven percent.
• 0:06
  Speaker 1: For the quarter inflation one and a half percent, and
• 0:09
  Speaker 1: of that quarter two increase the war quarter, petrol and
• 0:13
  Speaker 1: diesel accounted for two thirds of the increase.
• 0:16
  Speaker 2: Well, Trump percentaly made things harder, and I think any
• 0:20
  Speaker 2: economists would fully acknowledge that the cause of this high
• 0:23
  Speaker 2: inflation and the quarter just released is the international oil shock.
• 0:27
  Speaker 2: That is what has caused this inflation.
• 0:30
  Speaker 1: Domestic inflation three point eight percent. By the way, Mark Wiltshire,
• 0:34
  Speaker 1: the Cooperative Banks CEO with me this morning.
• 0:36
  Speaker 3: Hey Mark, good morning one.
• 0:38
  Speaker 1: Good to have you on the program. So, once you
• 0:40
  Speaker 1: strip out fuel and food, the core inflation number not
• 0:44
  Speaker 1: as bad as what potentially it could have been.
• 0:47
  Speaker 3: It's still looked at on the high side. Ryan, So
• 0:49
  Speaker 3: we're two point nine and you strip out those oil prices.
• 0:52
  Speaker 3: But so hiring at the range, I think, as you say,
• 0:56
  Speaker 3: the fuel price is really driving this, so that at
• 0:59
  Speaker 3: least con pushing up inflation and also I think pushing
• 1:03
  Speaker 3: up expectations and interest rate markets. Wholesal interest rates are
• 1:06
  Speaker 3: up on the back of that Middle East conflict.
• 1:09
  Speaker 1: Does that mean we're going to see fixed rates because
• 1:11
  Speaker 1: at the moment we've you know, a lot of the
• 1:13
  Speaker 1: stuff is being priced in what the Reserve Bank's been
• 1:15
  Speaker 1: talking about, where we see fixed rates go up soon.
• 1:18
  Speaker 3: Exactly, I would think, yes, you think you're going to
• 1:21
  Speaker 3: see fixed rates. I mean those wholesal rates are up
• 1:23
  Speaker 3: about thirty basis points Thatt's point through the percent in
• 1:26
  Speaker 3: the last couple of weeks, and I think banks will
• 1:29
  Speaker 3: have to start pricing that on even though the OCA
• 1:32
  Speaker 3: was priced in. As you say, those wholesale markets have lifted,
• 1:36
  Speaker 3: So i'd expect this to be upward pressure on retail
• 1:41
  Speaker 3: mortgage rates.
• 1:42
  Speaker 1: When are you going to lift your rates?
• 1:43
  Speaker 3: Mate? I think they're going have to go pretty soon.
• 1:46
  Speaker 3: It's yeah, it's pretty skinny out there at the moment,
• 1:48
  Speaker 3: So yeah, I think they're not big changes, but I
• 1:52
  Speaker 3: think we're going to have to see that pass through
• 1:55
  Speaker 3: wholesale market has been very volatile on the back of
• 1:57
  Speaker 3: these conflicts.
• 1:58
  Speaker 1: How much we're talking.
• 2:00
  Speaker 3: I think around that kind of just what the wholestel
• 2:02
  Speaker 3: markets are in that region of thirty basis points is
• 2:05
  Speaker 3: going to have to happen pretty soon.
• 2:07
  Speaker 1: And the other thing, course, is council rates, which people
• 2:11
  Speaker 1: are texting in the program right now. As you can imagine,
• 2:13
  Speaker 1: my council rates have gone up x y z and
• 2:16
  Speaker 1: quarter three rates are going to be a big feature,
• 2:18
  Speaker 1: aren't they.
• 2:19
  Speaker 3: They are, I mean eight point eight percent in those
• 2:21
  Speaker 3: inflation figures from council rates. So those are the big
• 2:25
  Speaker 3: ones fuel rates, electricity, and they're not that easy to
• 2:29
  Speaker 3: avoid for customers too, so people out there hard to
• 2:33
  Speaker 3: really dodge those ones, and those rates are certainly effected
• 2:36
  Speaker 3: on this inflation result.
• 2:37
  Speaker 1: Mark always good to have you on. Mark Wiltshire Cooperative CEO.
• 2:41
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• 2:44
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• 2:48
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