The Australian reports that borrowing costs for domestic banks have come down since December when worries about contaigion from Europe peaked. Those lower rates may be passed on to consumers but it’s more likely that they will go straight to the bottom line.
It also interestingly notes that Westpac introduced euro-denominated bonds last week, suggesting they believe that EUR/AUD will continue to fall. Although I suppose you could also argue that bond buyers pushed for the issuance because they’re bullish.
