NAB CEO: Household confidence "brittle"

By |

Cameron Clyne has warned that household confidence could remain brittle if interest rates continue to rise as expected

Delivering a speech to the Australia-Israel Chamber of Commerce in Sydney, Clyne said most borrowers could probably absorb higher mortgage repayments, but warned of the psychological impact of higher interest rates on household spending.

''Do they perhaps just keep their wallet in their pockets over the next couple of months?'' he speculated.

The SMH reported that Clyne was ''cautiously optimistic'' about an economic recovery, but reminded those attending of Australia's reliance on overseas capital. 

''As long as we see the potential for fragility in other parts of the world we can't stand aside from it,'' Clyne said.

During the speech, Clyne said the bank was weighing up whether it should expand its banking interests in the UK or pull out entirely. NAB holds a 4% stake in the UK market through its ownership of Clydesdale Bank.

Related stories:

NAB cautious on UK opportunities - A forced shake-up of the UK banking sector could present opportunities for NAB, but CEO Cameron Clyne is cautious about increasing its exposure in the region

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : lalor park , tuart hill , queens park , harris park , st marys

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here