Westpac continues to be attacked in the press after Australia’s largest bank raised variable home loan rates by 45 basis points last week, almost double 25 basis point rise announced by the Reserve Bank. The man who announced the changes, Westpac retail boss Peter Hanlon, was quietly shifted to a new role only days later, while one of the world’s most powerful businesswomen, South African-born Gail Kelly, has endured possibly the most difficult week of her corporate life.
The difference between home loans and banana smoothies
So according to Westpac, mortgages and banana smoothies are very similar. But the money that banks needed to buy started to cost them a lot more, just like bananas for smoothies. You still following?