Westpac calls for another Australian rate cuts

Author: Adam Button | Category: Central Banks

Westpac CEO Gail Kelly said low consumer and business confidence should encourage the RBA to cut further.

Kelly said conditions were unlikely to improve in the near term because of the high dollar and consumer caution, and that the economy needed another kick.

“I would be in the same camp as most of the market actually in saying there’s likely to be a further rate reduction in the new year, whether it is February or March,” Mrs Kelly said.

Westpac and other Australian banks have so far failed to pass on the full rate cuts and have been pocketing the difference — plenty of reason there to want the RBA to cut further.

The OIS market sees a 60% chance of a cut at the next RBA meeting on Feb 6 but the Australian dollar is seemingly an unstoppable juggernaut.