The days of Australian borrowers being able to largely absorb the impacts of repeated interest rate rises will soon be over, Westpac has predicted. 7NEWS
chief executive Peter King says it’s “inevitable” the impact of higher rates would be felt, including when borrowers’ low fixed-rates roll over onto higher variable rates.For more Personal Finance related news and videos check out“We are not yet seeing increases in hardship or stressed assets,” King said on Monday, after announcing the company had posted a $5.7 billion annual profit.
“That will be hard for people, and it’s important to acknowledge the challenges ahead as customers navigate the tougher environment.” “Housing prices have fallen in recent months and this will continue into 2023. Credit growth is expected to ease. GDP growth will slow and unemployment will rise,” he said.The bank on Monday posted a better-than-expected earnings result, with $5.7 billion in net profit for the 12 months to September 30, up 4 per cent from the year before.
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