Macquarie analysts believe that rising interest rates in Australia have increased the possibility that the country's banking sector's short-term performance will exceed expectations. They informed customers that recent market changes in overnight interest rates and swap pricing may bring room to increase in profit margins. Increased competition may fully or partially offset this benefit, but these analysts still believe that there is an upward risk that the performance of major lenders in early 2026 exceeds average expectations. However, this is not all good news for bank stocks. They warned that rising interest rates also indicate downside risks in valuation multiples and real estate market popularity.

Macquarie analysts believe that rising interest rates in Australia have increased the possibility that the country's banking sector's short-term performance will exceed expectations. They informed customers that recent market changes in overnight interest rates and swap pricing may bring room to increase in profit margins. Increased competition may fully or partially offset this benefit, but these analysts still believe that there is an upward risk that the performance of major lenders in early 2026 exceeds average expectations. However, this is not all good news for bank stocks. They warned that rising interest rates also indicate downside risks in valuation multiples and real estate market popularity.