Westpac Bank is to increase its headline floating home loan
rate for high equity borrowers by just 10 basis points in the
last of the major banks to move in the wake of the Reserve
Bank's official cash rate hike.
New Zealand's central bank increased cash rate from 2.5 per
cent to 2.75 per cent last week on the back of New Zealand's
Westpac said it would absorb part part of the increase in a
bid to remain competitive. The bank said its Choices Floating
rate would rise to 5.74 per cent but all other floating rates
would rise by 25 basis points.
Interest on its short term deposits would also rise by 25
The rates would change from tomorrow for new customers and on
April 11 for existing customers.
Ian Blair, Westpac general manager retail, said it was
committed to keeping its floating rates extremely competitive
after a period of historical low rates.
"We want New Zealanders to know we are open for business and
will continue to offer competitive interest rates."
He also urged customers to ensure their loans were structured
to suit their circumstances in light of further potential
increases in the cash rate.
Westpac was the last of the banks to make a move following
the cash rate increase.
BNZ announced increases to its rates on Tuesday while ANZ,
ASB and Kiwibank all increased rates last week.