Photographer: Deam Lewins/AAP

As Crikey has pointed out, the Australian Financial Review has been on a campaign lately for higher interest rates, apparently as a punishment for the moral laxity of loose monetary policy. Actually, we suspect it's mainly because the Fin is desperate for things to write about, but the campaign has, apart from the usual suspects like Warwick "Never Met a Rate Rise He Didn't Like" McKibbin, unearthed a few feral neoliberals like Warren Hogan who want higher interest rates regardless of whether people lose their jobs as a result, or foreign-based prognosticators like Jeff Carmichael demanding rate rises from Singapore.

So given we've been hearing for weeks from Stutch and co about why we urgently need higher interest rates, you can forgive us for being mystified by today's headline in the Businessman's GazetteBanks face $70 billion gap in funding, a follow-up to a weekend story along similar lines. "The crisis-like spike in Australian bank funding costs has forced more lenders to slug borrowers with 'out of cycle' mortgage rate rises, heightening speculation all borrowers will have to pay more on their home loans within months," went the weekend warning. Today it was "a crisis-like blowout in short-term funding that is increasing bank funding costs and has already prompted the non-major banks to enact 'out-of-cycle' mortgage rate rises ... That could have consequences for the economy as more households are hit with higher borrowing costs."