Westpac stock: Business conditions weaken as RBA hike outlook firms

Published on 10/31/2026 at 10:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Westpac stock faces a mixed backdrop as the bank's latest Business Signal points to weaker conditions and higher cost pressure. Economists expect another RBA rate hike in November.

Business conditions and rate outlook

Westpac's October Business Signal found weaker Australian business conditions in the third quarter as expenses outpaced revenue.
Westpac economists expect the Reserve Bank of Australia to raise its cash rate by 25 basis points in November.

Westpac, AU000000WBC1, Illustration mit AI erstellt.

Westpac stock faces a mixed operating backdrop after the bank's October Business Signal pointed to weaker Australian business conditions and persistent cost pressure. The report was published by Westpac IQ on Friday, October 30, 2026.

Business conditions lose momentum

The Westpac Business Performance Gauge fell 1.3 percent quarter over quarter in the third quarter and stood 2.3 percent below its year-earlier level, according to the Westpac Business Signal. Operating expenses rose 1.8 percent while revenue increased 0.5 percent.

The report said debt-servicing costs rose 5.7 percent quarter over quarter and were 12.7 percent above the year-earlier level. Household spending momentum also eased, while about one in four businesses faced constraints. Conditions for small and medium-sized enterprises weakened for a third consecutive quarter.

RBA decision remains in focus

Westpac economists expect the Reserve Bank of Australia to raise the cash rate by 25 basis points to 4.85 percent in November. They said further increases were not the baseline, although stronger fourth-quarter inflation could raise the risk of another move, most likely in February.

For Westpac, the outlook matters through household demand, housing activity, credit quality and funding costs. The Business Signal expects domestic growth to slow to about 1.5 percent by the end of 2026, while margins are likely to remain under pressure through most of next year.

Westpac stock traded at 23.16 euros on Lang & Schwarz at 10:03 Berlin time on Saturday, October 31, 2026. Investors can follow the real-time quote of Westpac stock.