A central bank decision to cut interest rates has prompted Westpac Chief Executive Officer Gail Kelly to claim that Australian consumers would be more likely to save rather then spend any extra money.

“What will happen is that customers will take the extra cash that they’ve got and probably apply it more to debt repayment and to savings,” Kelly told the ABC.

Kelly also said she was under the impression the RBA would make more rate cuts, but said it was too early to tell, especially with the global economy on tenterhooks due to Europe’s financial crisis.

Source: Bloomberg