Major hints at rates decision

by Adam Smith07 Jun 2012

A major bank has again seemingly telegraphed its next rate move in light of the RBA's cash rate cut.

Speaking to News Ltd, ANZ Australia chief executive Phil Chronican warned that "very fragile" financial markets would continue to put pressure on funding levels.

The bank is set to make its monthly rate announcement on Friday, and Chronican told News Ltd its decisions to hold back part of the RBA's cuts in December and May were "the right calls".

Chronican pointed to the continuing tenuous situation in Europe, and said it had caused uncertainty in global markets reminiscent of the GFC.

"It's a little more uncertain than it was two months ago, and the longer these things go on the more it causes concern," he said.

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