ANZ bank busts out big bonuses
This last year may have been tough for many Australians, big bank employees are no exception. Senior execs have seen their wages sit flat through Covid’s early days, but all of that has just changed.
As inflation has started to bubble up, so have ANZ bonuses – and doubtlessly we’ll hear soon about hikes at other lenders.
So, who’s getting what?
Shayne Elliot CEO Take home pay this year up 54% to $5,752,821
Mark Whelan Group Exec. Institutional 74% increase in take home pay to $4,565,700
Mark Hand Group Exec. Retail Increase of 10.9% to $3,411,000
Maile Carnegie Group Exec. Digital Up 36% to $3,511,500
(These figures are all take home pay for this year which may include vesting bonuses and other one-off payments)
Four rate hikes over the next year
Two days ago RBA governor Philip Lowe called the market’s gamble that there would be hikes in 2022 “a complete overreaction.’
Today? Investors have largely ignored him, still pricing in four rate hikes in 2022. And Economists agree – today’s AFR poll of 17 different economists showed that all of them had kept the same view they had before Tuesday’s press statement by Lowe.
Lender interest rate rise predictions
AMP 0.1-0.25% Nov 2022
CBA 0.15% Nov 2022
0.25% Dec 2022
NAB Mid 2023 (Cash rate 1.75%+ by end of 2024)
ANZ Second half 2023
Westpac 0.15% Q2 2023
Religious groups use climate-based bank lending as discrimination argument
Pressure groups are using an argument that banks using climate change as a basis to deny loans creates a precedent that businesses are allowed to act on “religious and political” criteria.
FamilyVoice Australia spokesman Greg Bondar cited Alan Joyce’s statement that Qantas backed the sacking of Israel Folau two years ago as further evidence of the assertion.
“The principles of religious freedom ought to protect both the individual and organisations,” he told The Guardian.
The bill and its contents are a touchy subject, with reports that some MPs are prepared to cross the floor over the inclusion of the clause to allow discrimination.
The controversy comes after 450 banks across 45 countries committed to a key goal in limiting greenhouse gas emissions as part of the Cop26 summit in Glasgow.
Fed slows taper, may raise rates as Europe interest rates jump
The US Fed has said that it will start to cut its $120 billion bond purchasing program causing the US$ to slip in value. The Federal Open Market Committee has announced that it will cut its purchases of Treasury securities by $10 billion a month, and the central bank will also taper its mortgage-backed securities by $5 billion a month.
CBA head of international economics Joseph Caruso has told the AFR this morning that he believes that US rates may start rising from September next year.
The news comes as Poland, Europe’s 5th biggest country has announced that it has hiked interest rates for the second month in a row by 0.75% to a total cash rate of 1.25%. Commentators expect the Bank of England to raise rates tomorrow for the first time since 2018.
Central bank rates around the world
DB (Germany) -0.36%
ECB (Europe) 0.00%
RBA 0.10%
BoE (UK) 0.10%
FED (US) 0.25%
BOC (Canada) 0.25%
NZ 0.50%
Poland 1.25%
