Short-term rates thinking at Westpac
With its full-year profit to announce today Westpac must have felt the need for some public relations posturing in the context of having to announce a 25 basis point increase in its standard home loan rate yesterday (as did other major banks). The RBA yesterday lifted the cash rate by 25 basis points to 3.5 per cent, and this will flow through to most variable rate loans quickly.Still, Westpac said in a media release that its variable business lending rates will not be increased.For now, they probably meant.However, Westpac have thought up a stunt for the television news tonight and will be holding their media briefing in one of their ye olde bank branches in Sydney this afternoon. One theme covered will be the hiring of more "local" managers.Another reason for the choice of location must be to further reduce the prospect (already negligible at any bank media briefing) of anyone asking questions.