Tag: Westpac

Businesses have welcomed news of a surprise jump in consumer sentiment, as the number of optimists outweighs the number of pessimists for the first time in some months.

Westpac will cut around 400 jobs from its head office, technology and operations teams this year, to compensate for a slow down in loan growth.

Businesses are no more satisfied with the major banks now than they were in October, despite two interest rate cuts in November and December.

Two consecutive interest rate cuts have failed to boost post-Christmas consumer sentiment, a result economists have called “disappointing.” But slowing inflation means businesses may benefit from more rate cuts in the months to come.

When the Reserve Bank cut interest rates, home owners arm-wrestled the banks into passing on the cut. But, as Rohan Gamble finds, small businesses aren’t as lucky:

“Small businesses aren’t just missing out on full rate cuts, business lenders are taking almost double the amount of time to implement the rate reductions.”

The four major banks are closing the gap in business satisfaction against smaller rivals. Satisfaction with the Big Four climbed to a new record high in November, continuing a trend seen throughout 2011, according to the DBM Consultants Business Financial Services Monitor.

New financial research has shown Australians are more satisfied with Sydney-based banks than Melbourne-based ones.

Consumer sentiment has jumped 6.3 percent this month, thanks largely to the Reserve Bank’s decision to cut interest rates.

The Reserve Bank of Australia (RBA) cut interest rates by 25 basis points yesterday, taking the cash rate down to 4.5 percent in time for the all important Christmas season.

The major banks are becoming increasingly different in their approaches to the business banking market, according to recent customer satisfaction results.