Note the rather large spread that’s opened up between the market’s expectations for the official cash rate and the BBSW rate.
…………To make the point about how unusual this situation is, let’s take a look at the spread over a longer time frame……. As you can see, the GFC is the only other period where this spread has blown out in this way.
………..The US and Great Britain, which led the interbank seizure in the last crisis, have risen mildly. Of the Western markets, only Australia and Europe have spiked in a way resembling the GFC.
via More on bank funding vulnerability – macrobusiness.com.au