Westpac announces the end of low interest rates

The chairman of Westpac, Ted Evans, has admitted that interest rates would continue to rise independent of official RBA rate hikes for at least the next 5 years. In an interview with The Australian Financial Review, published today, Evans warned that the RBA cash rate was no longer the primary guide for bank interest rate movements.

“Other influences are simply that much more important at the moment, because of what’s happening globally,” he said. “That will remain the case for many years to come, may even remain the case forever.”