Sydney, Jan 7, 2026, 17:22 AEDT — Market closed
Westpac Banking Corp (WBC.AX) shares ended down 1.75% at A$37.52 on Wednesday, as investors sold Australia’s big banks late in the session. The stock traded between A$37.52 and A$38.30 and is about 7% below its 52-week high. 1
The move followed a softer-than-expected inflation report that pushed interest-rate expectations back into the spotlight — a key driver for bank earnings and loan demand. Data from the Australian Bureau of Statistics showed annual consumer price inflation eased to 3.4% in November from 3.8% in October. 2
Underlying price pressure, however, remained sticky. The trimmed mean — a “core” inflation gauge that strips out big price swings — rose 0.3% on the month and was up 3.2% year-on-year, leaving markets still pricing roughly a one-in-three chance of a rate rise in February, according to Reuters.
The benchmark ASX 200 finished 0.15% higher, but banks were among the few laggards after the CPI release. Westpac shed 1.8% and National Australia Bank fell about 2%, while miners and healthcare stocks helped prop up the broader market, market data showed.
The bank weakness extended a pullback seen earlier in the week. Fund managers were rebalancing portfolios and questioning valuations after strong recent runs, Moomoo market strategist Michael McCarthy said. 3
Westpac’s slide also left it sitting on the day’s low, a level traders often watch as near-term support. The stock’s 52-week range spans A$28.44 to A$41.00, Investing.com data showed. 4
For rate-sensitive stocks, attention is turning to the Reserve Bank of Australia’s next policy decision, due at 2:30 p.m. AEDT on Feb. 3. The RBA’s cash rate target — its benchmark policy rate — currently sits at 3.60%.
Westpac’s next company catalyst is its first-quarter results announcement on Feb. 13, with interim results and a dividend update scheduled for May 5, its financial calendar shows. 5
A key risk for the banks is that “core” inflation stays too firm to give the RBA comfort, forcing tighter policy that could pressure borrowers and lift bad-debt worries. A sharper slowdown in housing activity would add another drag on credit growth.
