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*** It is worth noting that Westpac's.....>

AUSTRALIA
AUSTRALIA: *** It is worth noting that Westpac's move to raise its standard
variable home loan rate by 14bp to 5.38% is the first such move by one of the
big 4 banks, as far as we know.
- Westpac stated that move in the rate reflects a sustained increase in funding
costs.
- The potential policy feedback here, especially if some of the other large
financial institutions follow Westpac's lead, is that households will feel the
pinch from higher mortgage payments, crimping household spending/consumer
optimism, leaving the RBA on hold for longer.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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