Westpac matches Reserve Bank rate hike

WESTPAC is the latest bank to lift rates by 25 basis points, matching the RBA rate rise.

WESTPAC has raised its interest rate on home loans by 25 basis points, matching the Reserve Bank's latest rate rise.

Westpac's standard variable home loan interest rate and variable business lending rate will rise by 0.25 percentage points to 7.01 per cent per annum.

The rate rises are effective from March 5.

The announcement comes after the RBA raised the official cash rate by 25 basis points to 4 per cent yesterday , its highest level in a year.

Commonwealth Bank and ANZ announced similar rate increases yesterday, as did Westpac subsidiary St George.

CBA's standard variable loan rate will rise to 6.86 per cent on March 5 and ANZ will increase to 6.91 per cent.

Westpac group executive of retail and business banking, Rob Coombe, said the rate rises would lift monthly repayments on an average $250,000 household mortgage increase by approximately $40.

Credit card interest rates and deposit rates also would increase by 25 basis points, Mr Coombe said.

"Westpac continues to support customers by providing a range of competitive home and business loans as well as some of the most attractive deposit rates in the market," he said.