Westpac
(ASX:WBC) has been attacked by Treasurer Wayne Swan for its decision to raise its variable interest rate by 45 basis points when the Reserve Bank only lifted rates by 25 basis points.
Westpac’s move could result in a boost to profit of up to $230 million by rough estimates but Mr Swan said he was disappointed with Westpac’s decision saying it is not justified and warning there will be a backlash from customers.
He also said the government will not continue its bank guarantee indefinitely, saying it will be withdrawn when market conditions are suitable.
Looking at profits, Westpac reported a weaker net profit result in 2009 compared to 2008.
