Comyn also said Australia was better placed than other countries, but there was a risk of slower global growth and higher inflation in the medium term.
“I think there’s certainly risks to the downside around slowing global growth, inefficiencies in trade, therefore more inflationary … I do think Australia is relatively well-placed, but I think we need to be certainly very mindful about that over the medium and longer term.”
Commonwealth Bank CEO Matt Comyn.Credit: Oscar Colman
Comyn said Australia was more “insulated” than other countries, and CBA did not expect to change its lending settings in response to recent global events. In the shorter term, Comyn said financial markets will be volatile.
“Markets do not like the uncertainty that is sort of prevalent at the moment, so I think we’ll see some pretty wild swings,” he said.
Earlier, Irvine and other bankers at the event welcomed the Reserve Bank’s February rate cut, saying it had boosted confidence significantly.
CBA retail banking chief Angus Sullivan and ING Australia CEO Melanie Evans said there had been a notable increase in interest from mortgage borrowers following the RBA’s rate cut, while Irvine said the rate cut had an “outsized” effect on sentiment and confidence.
“It’s my strong view that the trough of this economic cycle was the back half of last year, and that 2025 is going to be better than 2024,” he said.
Also at the event, Australian Prudential Regulation Authority chair (APRA) John Lonsdale emphasised the uncertain environment facing banks, pointing to the prospect of a global trade war, conflict in the Middle East, and the Trump administration’s pledge to roll back financial regulation.
Lonsdale said the number one topic arising in his recent discussions with bank bosses was international upheaval regarding regulation, but he reiterated that APRA strongly supported the regulations imposed on banks to make finance more shock-proof since the 2008 global financial crisis.
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