marketplace for transaction like deposit products, money market mutual funds, cds, certain high yield savings accounts, they are offering very competitive rates. one of the reasons banks are able to keep their rates low is because consumers are slow to re optimise, they are slow to find these opportunities. but they are certainly out there. and so i think the first step is for consumers to make sure that they re doing what they want to do with their money and that they re aware of the opportunity costs that they are paying by staying in the account that they currently in. matthew plosser from the federal reserve bank of new york, a real pleasure having you on the show, thank you forjoining me and i ll check in with you soon. thanks for having me. because banks are charging more for lending but paying less to savers, they could be in for a record year in terms of the profits they make. so, let s find out who s going to benefit and why. liz lumley from the banker magazine, a real pleasur
so, if you look at the marketplace for transaction like deposit products, money market mutual funds, cds, certain high yield savings accounts, they re offering very competitive rates. one of the reasons banks are able to keep their rates low is because consumers are slow to re optimise, they re slow to find these opportunities. but they re certainly already out there. and so, i think the first step is for consumers to make sure that they re doing what they want to do with their money and that they re aware of the opportunity costs that they re paying by staying in the account that they re currently in. matthew plosser, from the federal reserve bank of new york, a real pleasure having you on the show, thank you forjoining me and i ll check in with you soon. thanks for having me. because banks are charging more for lending, but paying less to savers, they could be in for a record year in terms of the profits they make. so, let s find out who s
to find better deals. all rates were low. and, matthew, let me end on this. i m just wondering should central banks be doing more? can they do more perhaps to force banks to increase the rates for savers? i m not going to make a policy application here but here s what i would say is that savers have lots of opportunities besides the bank that they currently store their deposits with. so, if you look at the marketplace for transaction like deposit products, money market mutualfunds, cds, certain high yield savings accounts, they are offering very competitive rates. one of the reasons banks are able to keep their rates low is because consumers are slow to re optimise, they are slow to find these opportunities. but they are certainly out there. and so i think the first step is for consumers to make sure that they re doing what they want to do with their money and and that they re aware of the opportunity costs that they
correct rate5 re optimise and understand what the correct rates to be offering would be. re trench and re optimise. new products should return to market. after this period. but what it means for borrowers i5 market. after this period. but what it means for borrowers is different. with it means for borrowers is different. with rates substantially higher, new house buyer5 with rates substantially higher, new house buyers are going to face higher monthly repayments. and with bank affordability criteria here meaning that they will look for a certain amount of coverage in people s monthly earning5 certain amount of coverage in people s monthly earnings to cover the repayments that they face, these higher rates mean that it is substantially less likely that first time buyers will have access to mortgage debt. first-time buyers will have access to mortgage debt. first-time buyers will have access to mortgage debt. yes, that decision to mortgage debt. yes, that decision to actually buy t