(1888PressRelease)
May 01, 2009 - "Westpac continues to manage the challenging funding conditions with careful consideration of the deteriorating economic environment and the impact on our customers," Westpac Group Executive, Retail and Business Banking, Peter Hanlon said.
"Our lending is funded through a mixture of customer deposits and wholesale borrowings, the cost of which has risen substantially over the past 18 months. Westpac's overall funding costs have continued to rise, as existing funding matures and is replaced by more expensive sources of funding.
"Over the past six months we have passed on a significant amount of the reduction in the official cash rate to all our customers. However, we recognise that many of our small business customers are managing difficult economic circumstances and as a result we believe now is the right time to pass on in full the latest interest rate reduction to these customers.
"Credit Card customers will also benefit from a further 25 bps reduction in rates, which will give additional relief, to household budgets and assist those customers looking to reduce their credit card debt. The rate reduction will apply to Altitude, Altitude Business, Earth, 55-Day, Low-rate and Business Choice credit cards effective from 20 April 2009."
In addition to reducing Westpac's standard variable home loan rate, Westpac also has a number of competitively-priced fixed rate loans for those customers looking for interest rate certainty, including one and two-year fixed rates of 4.99% for packaged customers.
Mr Hanlon said Westpac had also announced an extension of its hardship program Westpac Assist to small business customers to provide additional advice and support to help them manage their financial affairs throughout the economic downturn.
Westpac Assist has a team of specialists able to provide personal assistance to help customers find the best possible way to regain and maintain control over their finances. Customers facing financial difficulties in relation to their Westpac loans or accounts can contact Westpac Assist on 1800 067 497.
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