Bank CEO shares insights on interest rates and the economy
The resilience of the Australian economy is why inflation is proving to be a bit stickier, according to NAB Group chief executive Andrew Irvine (pictured).
“Right now, the Australian economy, and to some extent the global economy, are actually proving to be pretty resilient and are, if anything, performing better than our expectations,” Irvine said.
When asked about the cash rate, which the RBA decided to maintain at 4.35%, the bank executive stated the recent performance of Australia’s economy could mean rates take longer to go down.
“The problem with a more resilient economy is that central banks, not just in Australia but globally, need to make sure inflation is under control before they can reduce rates,” Irvine said. “That is not an easy needle to thread.”
“Our current view is we won’t see rates go up, hopefully that gives some comfort to people. But it will still be a while until we see them come down.”
In addition to discussing the national economy, Irvine also emphasised the priorities he set at NAB since taking office last month.
“My priority has been listening to customers and colleagues to get a sense as to how we are going, what’s working and where we can do better,” he said. “I’ve visited just about every floor in our offices in Melbourne, Sydney, Brisbane and Auckland.”
He affirmed his commitment to evolving the bank’s operations without major shifts but focusing on enhancing customer interactions and simplifying internal processes.
“We’re focused on being really good for customers every single day, and being a great bank for relationship bankers who want to build a career,” he said. “The simpler we are, the better we will be for customers.”
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