Sydney, Feb 27, 2026, 16:55 AEDT — After-hours
ANZ Group Holdings Ltd shares (ASX:ANZ) closed up 0.15% at A$40.04 on Friday, after touching A$40.27 earlier in the session. The move contrasted with declines in Westpac Banking Corp and Commonwealth Bank of Australia, while National Australia Bank was little changed. 1
The small gain lands as investors reprice the path for Australian rates after inflation data this week ran hot and lifted market odds of another Reserve Bank of Australia move in May. Core inflation, measured by the trimmed mean, rose to 3.4% from 3.3% and the headline pace held at 3.8%, Reuters reported. “The Reserve Bank’s preferred trimmed mean measure was still too high for its liking,” Stephen Smith, a partner at Deloitte Access Economics, said. 2
Why it matters now is simple: bank stocks are basically interest-rate stocks with a mortgage book attached. Higher rates can help net interest margin — the spread between what a bank earns on loans and pays on deposits — but they also raise the risk of slower credit growth and bigger bad-debt charges.
Currency markets are telling the same story. The Australian dollar held around $0.7106 and was on track for a roughly 2% monthly gain, with investors leaning into a more hawkish RBA outlook, Reuters reported. “The rates are reflecting the changing macro situation,” Sim Moh Siong, a currency strategist at OCBC, said. 3
The broader tape stayed constructive. The S&P/ASX 200 added 0.25% to finish at a new all-time high, led by gains in gold, utilities and telecoms shares, according to Investing.com. 4
Bond markets were quieter. Australia’s 10-year government bond yield eased to about 4.66% on Feb. 27, little changed on the day, Trading Economics data showed. 5
For ANZ, there was no fresh company headline driving trade on Friday. Investors instead kept the focus on the RBA’s tolerance for sticky inflation and what that means for pricing in mortgages and business lending across the majors.
But the rate story cuts both ways. If borrowing costs rise again, households and smaller firms can feel it quickly, and banks may have to spend more to keep deposits from walking out the door. Any stumble in jobs or housing would sharpen that risk.
The next hard catalyst for rate pricing is the RBA’s next Monetary Policy Board meeting on March 16–17. 6
For ANZ holders, the next scheduled company event is its interim report on May 7, with traders likely to watch for updates on margins, loan growth and credit costs. 7
