Westpac defends out-of-cycle rate rise amid concern others may follow

Westpac has defended its decision to raise interest rates, out of cycle with the Reserve Bank of Australia. The move has sparked fears the rest of the big four banks could do the same. And some Westpac customers are reconsidering their options.

A Westpac branch in Brisbane CBD Source: AAP

Westpac CEO Brian Hartzer says he is taking full responsibility for his company's rate rise.

Those increased funding costs have led to an increase in variable home loan rates by 14 basis points. The move comes despite the Reserve Bank keeping the official cash rate at a record-low 1.5 per cent, and after Westpac made $4.2 billion in profit in the past six months.

 

Listen to this report (in Bangla) in the audio player above.

Follow SBS Bangla on FACEBOOK.