Westpac To Raise Rates
SMH has reported that Westpac Bank today has advised it is under financial pressure to raise interest rates even higher, though it is fearing potential backlash from both customers and government bodies. Westpac posted at 33% profit last month, and inflicted scrutiny upon itself from the general public for its increased 20 basis point RBA interest rate hike in Dec 2009. The institution has blamed the high cost of funding, sourcing funds from overseas. Though political pressure has been acknowledged as a deterrent leading up to election time, rising rates will not be tolerated.
Simon Reibelt from Oasis Home Loans Northern Beaches said that as long as the cost of funds from overseas sources remain at a high, Banks and other lending financial institutions shall find it harder to keep their costs and therefore rates within overall green guidelines and perceptions.