A Westpac Banking Corp
(ASX:WBC) senior executive says more cuts by the central bank would be unlikely to boost demand for loans, according to media reports.
The head of Westpac's institutional division, Rob Whitfield, says he expects two further cuts before the current easing cycle concludes.
The RBA yesterday held its cash rate at 2.75 per cent, as many economists had predicted.
But Mr Whitfield says the low interest rate environment, with the prospect of even lower rates later this year, will do little to reverse stagnant credit demand.
He says credit growth has had a structural change.
Westpac generated a net profit of $3.3 billion in the first half of the current financial year.
