Westpac Wire

Australia's inflation rate has continued its gradual softening, but underlying price pressures remain elevated, reinforcing expectations that interest rates could stay higher for longer. The Australian Bureau of Statistics (ABS) has reported a further easing of headline inflation to 3.5 per cent in the 12 months to July, down from 3.8 per cent in June. Housing costs continue to be the biggest driver of annual inflation, rising 5.0 per cent year-on-year.

A former Navy officer developing protective clothing for women in high-risk jobs. A paediatric audiologist pushing for hearing checks to become routine for children. A food manufacturer exporting frozen desserts from south-west Sydney to international markets. A national skincare brand championing authentic representation for women experiencing cancer and those with sensitive skin.

When it comes to taming inflation, the conversation often lands on demand. Is there too much spending? Too many buyers? Are wages too high? According to Westpac Chief Economist Luci Ellis, there is another side of the story that deserves more attention. Speaking on Sylvia Jeffreys' The Pay Off podcast, Ellis said many of Australia's biggest economic challenges point to a common issue: the country's ability to supply what people need, from homes and infrastructure to skilled workers.

As markets largely expected, the Reserve Bank of Australia (RBA) has left the cash rate unchanged at 4.35% in its August meeting. The unanimous decision follows June’s hold and comes after three consecutive rate hikes earlier this year, which lifted the cash rate by a total of 75 basis points. The move is in line with Westpac Economics' revised forecast that the central bank would not hike rates in August and is unlikely to raise rates again this year.

Ask any of this year’s Westpac Female Founder finalists where their business began, and you’ll hear a version of the same story: ‘something was broken, there was a gap, so I fixed it.’ A nurse who spent decades watching CPR training fail to prepare people for the real thing, so she built a better mannequin. A Navy veteran who wore protective gear that was never actually made for her body, so she designed her own.

A Westpac banker’s quick judgement has saved a Western Australian customer from losing $1.2 million to a sophisticated payment redirection scam. The customer had visited Westpac’s Riverton branch to make what she believed was a routine transfer. The young mum was buying her first home, preparing for property settlement later that day. Within minutes, personal banker Neet Kukreja sensed something was off.

For years, Mia imagined her future in Newcastle. But after finishing her teaching degree, a job opportunity led her three hours inland to Scone, a quaint town in the Hunter Region of NSW. What wasn’t in Mia’s plan - and what she couldn’t foresee - was how quickly Scone began to feel like home. Intended as a pit-stop enroute to the city, the regional town instead became the place she bought her first property.

Australian businesses are navigating a world where disruption is more frequent and harder to predict. An AI-enabled scam, technology outage, supplier failure or economic shock can quickly trigger a chain reaction across operations, customers and finances. For business leaders, risk management has ballooned beyond prevention, to proactively building the capacity to adapt, respond and recover. The issue is risks rarely arrive alone.

Westpac is deeply saddened by the passing of William ‘Bill’ Evans, whose contribution to the bank, the economics profession and the wider Australian community leaves an enduring legacy. For more than three decades, Evans helped Australians make sense of a changing world. As Westpac's former Chief Economist, he guided customers, businesses, policymakers and colleagues through recessions, booms, market shocks and global crises.

Lower-than-expected inflation has prompted Westpac to revise its interest rate outlook, with chief economist Luci Ellis now expecting the Reserve Bank of Australia (RBA) to keep rates unchanged for the rest of 2026. The change follows the release of June quarter inflation data, which came in lower than both Westpac and the RBA had expected, especially across services and housing-related costs.