Gail Kelly says bank credit stays tight and lower interest rates may be necessary

Westpac CEO, Gail Kelly, has come out and said that wholesale funding markets will be volatile for years ahead and sees little growth in offshore borrowing - which will impact the housing and industry credit markets. She blamed volatility and uncertainty in global financial markets, resulting in a rise in funding costs. Westpac believes interest rates will be dropped again between now and Christmas to stimulate growth.