Westpac stock: Economists see Australian rates nearing a peak

Published on 11/13/2026 at 09:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Westpac stock is in focus after economists said further Australian rate hikes are unlikely. A softer 2027 outlook points to weaker housing and spending.

Westpac economists see rates peaking

Westpac Economics expects the Reserve Bank of Australia to pause at its December meeting.
A weaker housing market and softer discretionary spending point to slower economic growth in 2027.
The bank sees unemployment rising toward 5 percent and underlying inflation returning to the RBA target band.

Westpac, AU000000WBC1, Illustration mit AI erstellt.

Westpac Economics has strengthened its view that the Reserve Bank of Australia is near the end of its rate-hiking cycle. In an outlook published Friday, November 13, 2026, economists Luci Ellis and Marina Karpathios said fresh economic signals point to slower growth, higher unemployment and cooling inflation in 2027.

Westpac said the housing market had cooled faster than expected, with property turnover and financing activity missing earlier forecasts. Mortgage loan inquiries fell further in October after the September rate increase, before the full effect of the November increase had flowed through.

Housing and consumers weaken

The bank's Westpac Card Tracker also pointed to softer discretionary spending. Services spending was heading lower in the fourth quarter, while discretionary goods spending was already weak. Business surveys showed weaker conditions and a sharp fall in forward orders, adding to evidence of a less resilient domestic economy.

Westpac Economics expects unemployment to rise toward 5 percent and underlying inflation to return to the Reserve Bank's target band. Lower oil prices have also reduced the risk that fuel costs will feed into broader consumer prices, according to the outlook.

December pause in focus

The economists read Reserve Bank Governor Michele Bullock's post-meeting comments as a signal that policymakers are likely to pause in December. The November decision was split 6-3, which Westpac said showed growing awareness of the risk of overtightening.

A February 2027 rate increase remains possible, but Westpac said it would require a major new inflation shock. For investors, the outlook reduces the risk of additional near-term pressure on household borrowers, while weaker housing activity and consumer spending remain risks for bank credit growth and margins.

Westpac stock traded at 23.16 euros on Lang & Schwarz at 09:20 CET on Friday, November 13, 2026.