Westpac raises interest rates

Westpac is the latest bank to hike its interest rates, following in the footsteps of ANZ earlier this week.

Bosses at the bank announced that its standard variable home loan rate would rise by 0.10 per cent to 7.46 per cent and this readjustment will take effect from February 20th.

ANZ had already increased its own mortgage rates by 0.06 per cent – taking the standard rate to 7.36 per cent.

The banks have been quick to move after the Reserve Bank of Australia (RBA) surprised everyone by keeping the standard base rate at its current level.

Home loan customers may be forced to compare the best deals, as the other two major banks – NAB and the Commonwealth Bank – could also raise their own rates very soon.

This may benefit smaller lenders that have thus far refused to raise interest rates, including the Bank of Queensland, which has pledged to keep things the same until the RBA board meets again in March.

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