Westpac expects interest rates to remain “elevated” into 2027 and house prices to have fallen by nearly 11 per cent by March as it reported a $6.8 billion profit.
On Monday, the country’s oldest bank said the Australian economy was holding up “relatively well” on the back of strong business investment, but that price growth remained above the Reserve Bank’s target.
“This is presenting challenges for many households and businesses, although impacts are uneven across the economy,” it said in an announcement to the ASX ahead of the next Reserve Bank interest rate decision on Tuesday where the RBA is widely tipped to raise interest rates for the fifth time this year.
Westpac also said it expected house prices to have fallen by 10.9 per cent from March 2026 to March 2027.
Westpac’s $6.8 billion profit in the year to September was down 1 per cent from the previous year.
The bank will pay a final dividend of 77 cents a share, taking the full-year dividend to $1.54, up 1 per cent from the previous year.
More to come
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Millie Muroi is the economics writer at The Sydney Morning Herald and The Age covering workplace and economics. She was formerly an economics correspondent based in Canberra’s Press Gallery and the banking writer based in Sydney. Instagram/TikTok: @millie.muroiConnect via X or email.From our partners
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