SYDNEY, Jan 24, 2026, 17:32 AEDT — Market closed
- Westpac shares ended Friday down 0.44%, closing at A$38.74
- The ASX will be closed Monday in observance of Australia Day; trading restarts Tuesday
- Attention shifts to quarterly inflation on Jan. 28 and the RBA’s Feb. 3 decision, while Westpac’s quarterly update is set for Feb. 13
Shares of Westpac Banking Corporation (WBC) slipped 0.44% to close at A$38.74 on Friday. Investors in Australia’s major banks remained cautious, weighing changing rate forecasts against upcoming inflation data.
This matters now as bank stocks can react sharply when traders adjust their forecasts for the cash rate. While higher rates might boost lending returns, they also hike funding expenses and pressure households — factors that both impact bank profits.
The ASX cash market will be closed Monday for Australia Day, creating a long weekend before trading resumes Tuesday.
The broader market edged up on Friday, with the ASX 200 ending at 8,860, gaining 11 points or 0.13%.
Other big banks also edged lower. Commonwealth Bank dropped to A$149.48 from A$150.61, ANZ slipped to A$36.21 from A$36.40, and National Australia Bank fell to A$42.35 from A$42.43.
The labour market threw a curveball, pushing the rate discussion back into the spotlight. December saw Australia’s unemployment drop to 4.1%, with employment adding roughly 65,000 jobs. KPMG chief economist Brendan Rynne described the figures as “quite significantly stronger” than anticipated. ABC
Westpac senior economist Pat Bustamante noted in a Friday morning report that “rate markets have now priced in two rate hikes over 2026.” He added the chances of a February increase have surged, with “next week’s inflation data” set to be crucial. westpaciq.com.au
The Reserve Bank of Australia’s cash rate target stands at 3.60%. The central bank will deliver its next policy update at 2:30 p.m. AEDT on Feb. 3, following a two-day meeting.
Westpac’s next key date is its first-quarter results on Feb. 13, per the bank’s investor calendar. Traders will focus on loan growth, deposit pricing, and net interest margin—the difference between earnings on loans and costs of deposits—as competition remains fierce.
The path isn’t set in stone. Cooler-than-expected inflation could trigger a swift rollback in rate-hike bets, dragging bank shares down. On the flip side, hotter inflation would ramp up concerns about borrowers feeling the squeeze and bad-debt costs rising.
Investors are eyeing the December-quarter consumer price index, due Jan. 28 at 11:30 a.m. AEDT. After that, the Reserve Bank of Australia’s rate decision lands Feb. 3. Westpac’s quarterly update is set for Feb. 13.
