The head of the Reserve Bank says there isn't a strong case for the country's major lenders to independently hike interest rates at the moment.
The Reserve Bank boss says there isn't a strong case for Australia's big banks to hike rates right now.
Last November, the country's major lenders jacked up their mortgage interest rates despite the RBA holding its cash rate at a record low two per cent.
The banks at the time cited the need to help cover the cost of extra capital raisings to bolster their books against future financial shocks.
"I don't really see much of a case for independent increases in lending rates based on funding costs as they've evolved just lately," RBA governor Glenn Stevens told the House of Representatives economics committee on Friday.