Westpac's Kelly expects pause on interest rates

WESTPAC chief executive Gail Kelly says she expects a pause in the Reserve Bank's cash rate movements in the months ahead.

Westpac's Gaily Kelly said it was not on the bank's agenda to lift home rates beyond what the RBA may do / File

WESTPAC chief executive Gail Kelly says she expects a pause in the Reserve Bank's cash rate movements in the months ahead.

"It is good to see the Reserve Bank considers that as a result of yesterday's decision, rates for most borrowers will be at around average levels," Ms Kelly told analysts at Westpac's first half results presentation on Wednesday.

"This suggests that there will now be a pause before the next increase some time later this year.

"When that next increase occurs it will likely be in response to growing inflationary pressures."

The RBA yesterday raised the cash rate by 25 basis points to 4.5 per cent, the sixth time in eight months.

All four major banks matched the rate rise on their standard variable home loan.

Earlier on Tuesday, Westpac chief financial officer Phil Coffey said the bank currently had no intentions to raise its rates above the cash rate movements of the RBA.