Westpac Rates Will Move Carefully
As the RBA meets tomorrow (Tuesday), SMH has reported that Westpac will carefully consider its next rate rise on the back of negative consumer and industry feedback last time round when the Bank raised their rates significantly beyond the RBA. The Bank will look to restore themselves to inline raises with the RBA to shed its overly expensive shadow cast by its former actions. The NAB has been placing pressure on the other majors with level interest rate hikes and with aggressive competition in order to gain more market share. Funding cost increases are blamed for Westpac’s higher interest rates, with word this time round the Bank will keep in sync with the RBA’s estimated .25% increase to take the interest rate to 4%.
Simon Reibelt from Oasis Home Loans Northern Beaches saw this increase in competition as a positive, as consumers would be the ones to benefit. If differing Bank rates were to continue, it may provide enough intensive for customers to seek to refinance and jump ship.