Westpac last to raise rates

20:04, Mar 20 2014

Westpac is the last bank to raise its floating mortgage interest rates after the Reserve Bank increased the official interest rate a week ago.

Westpac said it would raise floating home-loan rates by 25 basis points after the Reserve Bank's official cash rate (OCR) rise from 2.5 per cent to 2.75 per cent.

However, Westpac's rate for mortgage customers with a loan-to-value ratio of less than 80 per cent would experience only a 10 basis-point rise in interest rates to 5.74 per cent.

Customers with savings would see the benefits of the OCR rise with Westpac raising 90-day term deposit rates by 25 basis points.

However, rates for key online savings accounts would rise by only 20 basis points.

The floating rate changes would take effect from tomorrow for new customers and from April 11 for exiting customers.

The increase to interest rates for online savings accounts will take effect from April 11.

Other New Zealand banks had already passed on interest rate rises, with ANZ raising rates last week just hours after the Reserve Bank's move.

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Fairfax Media