Sydney, March 20, 2026, 09:28 AEDT
Westpac Banking Corporation shares on the ASX slipped 0.96% to close at A$41.13 on Thursday. The S&P/ASX 200 slumped 1.65% to 8,497.8 after an oil shock shook risk assets.
This shift carries weight as banks across Australia adjust to the latest round of monetary tightening. The Reserve Bank of Australia bumped its cash rate up by 25 basis points to 4.1% on Tuesday. Westpac responded, announcing it will hike both variable home-loan rates and cash-rate-linked business lending rates by an identical 25 basis points, taking effect March 31.
Thursday’s jobs numbers did little to settle nerves about the RBA’s next move. February employment gained 48,900, but with joblessness ticking up to 4.3%, rate hike bets for May climbed—markets now price in roughly 57% odds.
Belinda Allen, who heads Australian economics at Commonwealth Bank, said after Tuesday’s move that “the domestic data flow alone justified a rate hike today.” Over at Westpac, chief economist Luci Ellis noted the board’s division leaves a follow-up in May “less certain,” but she’s sticking with her forecast for another bump. Reuters
Westpac, Australia’s third-biggest bank by market cap, entered the week riding a wave of solid, company-specific momentum. The February first-quarter update showed an unaudited net profit of A$1.9 billion—coming in about 5% above consensus—supported by A$12 billion in deposit inflows and A$22 billion in fresh loans. Net interest margin edged down 3 basis points, settling at 1.79%. Chief Executive Anthony Miller remains upbeat, saying he expects business and household credit demand to hold up.
Thursday’s action saw little consensus among the big banks. Commonwealth Bank eked out a 0.15% gain, ANZ slipped roughly 0.3%, and NAB dropped 1.29%. Westpac, for its part, stayed under its Feb. 25 intraday peak of A$43.32.
The upside doesn’t look boundless. In its Financial Stability Review released Thursday, the RBA flagged higher risks to the global financial system and noted that some Australian borrowers could run into tougher conditions. The central bank said lending standards should stay tight, even as it sees the financial system as “well placed” to weather a downturn and banks as solid. Reserve Bank of Australia
Westpac’s got a couple of near-term markers coming up. The bank wraps up its half-year on March 31, with interim numbers scheduled for release May 5. Those results will provide a sharper look at what the new rate environment is doing to Westpac’s balance sheet.
