Westpac boss Gail Kelly has warned consumers they could get slugged with more frequent rate hikes.
Kelly told the Australian Financial Review that borrowers should expect "smaller rate moves more often" as banks continue to distance themselves from the RBA.
Kelly claimed that funding costs remained expensive, and pointed to analysis indicating banks would have to hike rates by 15-20bps to remain profitable.
The claims echo those of CBA boss Ian Narev, who recently claimed the bank had just crossed the line into profitability on home loans after its 10bp February rate hike.
ANZ is set to announce its rate decision tomorrow, and HSBC economist Paul Bloxham has warned the AFR that consumers could be hit with more increases.
"We could see further tightening from the banks independent of the RBA," he said.
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