Sydney, Feb 1, 2026, 16:54 AEDT — Market closed.
- ANZ Group Holdings closed Friday at A$36.70, gaining 0.26 Australian dollars, or 0.7%. (Investing)
- Markets were closed Sunday, and all eyes now turn to the Reserve Bank of Australia’s Feb. 3 meeting, where major banks are predicting a 25-basis-point rate increase. (Business Recorder)
- Economists note that hotter inflation figures released late last week continue to push the central bank toward tightening to curb prices. (Reuters)
ANZ Group Holdings Ltd shares (ANZ.AX) closed up on Friday at A$36.70, gaining 0.26 Australian dollars, or 0.7%. Investors seem to be gearing up for a week packed with rate decisions in Australia.
The immediate catalyst isn’t tied to ANZ alone. It’s the Reserve Bank of Australia and its signals on where borrowing costs are headed next, following a string of data that’s undercut the “easy money” narrative.
This is key for bank stocks since rate moves have two sides. When policy rates rise, net interest margins—the difference between loan earnings and deposit costs—can expand. But higher rates might also dampen credit demand and ramp up bad-debt risks if households falter. For reference, a basis point equals one-hundredth of a percentage point.
For ANZ and its peers, the real attention isn’t just on the quarter-point hike itself but on the message behind it: do policymakers frame this as a one-off “insurance” move or hint at more to come? That subtle shift in wording can send bank valuations swinging fast.
Some economists say tighter policy is the obvious move if inflation doesn’t ease naturally. “With strong labour market data and capacity constraints, the case for tighter monetary policy is clear,” Cherelle Murphy, EY chief economist, said after the inflation print.
Bank shares are caught in a tug-of-war — buoyed by higher rates on paper but held back by persistent concerns over rising funding costs and mortgage competition. ANZ reflects this tension: steady, yet lacking the momentum to break free.
Looking ahead to February, positioning takes center stage. At Monday’s open, traders will focus on bond yields, bank spreads, and the Australian dollar to gauge how aggressively the rate call is being priced in. The key question: are we facing a “buy the rumour, sell the fact” scenario?
One risk for ANZ is if the central bank shocks by keeping rates steady or raises them while sounding less worried about inflation than the market anticipates. This could push yields down and reignite concerns that bank earnings momentum is reaching its limit.
Another risk is more down-to-earth: should the RBA take a hawkish stance and markets drive wholesale funding costs up, lenders could see their margins squeezed even as official rates climb — particularly if competition slows their ability to pass those costs onto borrowers.
The next big event is the RBA decision on Feb. 3, scheduled for 2:30 p.m. Sydney time, with the accompanying statement likely to steer bank trading for the week. (Abc)
