Already a subscriber?Investors should sell their shares in the country’s major banks because antagonistic politicians campaigning against higher profits will force large lenders to pass on more of the Reserve Bank’s expected interest rate cuts, hurting earnings.
Traders put a 76 per cent chance on the RBA cutting rates, at 4.35 per cent since November, this year. A rate cut is fully priced in for next year, and this could hurt profits. Westpac, NAB and ANZ are due to publish their half-year earnings next week. Citi’s downgrades come a month after Macquarie told its clients to “underweight everything” in the banking sector. That call had little impact on bank share prices.
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Source: FinancialReview - 🏆 2. / 90 Read more »