Australia's Westpac says funding still expensive

SYDNEY Oct 9 (Reuters) - Australia's Westpac Banking Corp (WBC.AX), is still experiencing high funding costs compared with a few years ago, but is seeing greater loan demand from small businesses, a top executive said on Friday. Peter Hanlon, head of retail and business banking for the nation's third biggest lender, told reporters that Australia could see another two rises in official interest rates before year-end, after this week's rate hike to 3.25 percent. (Reporting by Morag MacKinnon, Editing by Mark bendeich and Jonathan Standing)