Westpac lifted its three-year fixed rate by 0.1% to 6.95% and its five-year rate by 0.3% to 7.9%.
The floating rate was unchanged at 6.49%.
"Their timing was either immaculate or unfortunate," ABN Amro Craigs broker Peter McIntyre said, when contacted.
"They are the last retail bank to do so and it shows the competitive pressure in the sector."
MPs this week blasted banks for keeping rates and profits high, despite falling official interest rates.
The Reserve Bank will this morning announce if it is changing the official cash rate, which stands at 2.5%.
Opinion is divided on whether the central bank will keep the OCR at 2.5% or shave another 0.25% off the official rate and maintain its tough-talking stance.
However, it appears that no matter what Reserve Bank governor Alan Bollard does or says, the Australian-owned banks take little notice.
MPs were concerned some banks did not pass on the latest cut to the official cash rate and that only Westpac and ANZ-National significantly reduced floating rates.
The report to Parliament's finance and expenditure committee noted the Reserve Bank's explanation that international swap rates increased at the same time that many banks and governments were seeking to raise funds.
However, banks were urged to pass on OCR cuts to their interest rates to the maximum extent for the sake of the economy.
An ANZ-National spokeswoman said the OCR was no longer an indicator of lending rates.
"Rather, rates are a function of what we pay for both retail and wholesale borrowings, and these costs have not fallen by nearly as much as the recent falls in the OCR."
Mr McIntyre said the three- and five-year lending was funded from offshore and the cost of debt had risen through the current financial crisis.
There was little, if anything, banks could do about that. t was a fact of life.
The floating rate was based on the term-deposit rates banks had to offer as they competed for customers.
There was much demand for the money as corporations were competing for cash on six or nine-month terms because they could not get the money from traditional sources.
"Banks are having a war on term deposits to retain customers and retain money in their banks.
They are trying to increase their share by increasing the rates, going against the OCR moves.
"Short-term rates are a lot higher than they would normally be."
Retail bank branches now had the discretion to price and were offering higher rates to attract funds than the banks' wholesale departments.
That created the absurd situation where the official benchmark rate for 90-day bank bills was 2.8%, but the newspaper and branch billboards offered "specials" of around 4.25% for the same period and risk.
Finance Minister Bill English said the Government could not control what interest rates banks charged, but customers who felt aggrieved should consider their options.
Customers were sensitive about their treatment at the hands of banks, and that was something to which the banks needed to pay attention.
"Remember these are organisations with hundreds of thousands of customers and those customers are keen to see they are treated fairly."
Banks would be attuned to public perception, but it was up to the customers to respond and consider taking their business elsewhere if they felt they were being short-changed, he said.
