Matching its major rivals, Westpac Banking Corporation has become the latest lender to raise its variable home loan rate independently of the Reserve Bank of Australia (RBA), with a 10 basis point increase to 9.37 per cent, effective from April 2. The move comes only three days after National Australia Ban Ltd lifted its standard variable rate to 9.36 per cent.
Westpac group executive consumer financial services Peter Clare said the decision to increase rates was prompted by continued funding pressures.
"Operating as we do in the global economy, long and short-term funding costs are at record levels," Mr Clare said.
"We will continue to absorb a significant portion of the additional borrowing costs that we are experiencing on behalf of our customers."
The rates hikes from Westpac and NAB this week were independent of any rise in the official rate by the RBA.
Earlier this month, both ANZ Banking Group Ltd and St George Bank Ltd lifted their standard home loan rates by 35 basis points to 9.37 per cent, and AMP Banking has also announced a five-basis point increase to its standard variable interest rate to 9.37 per cent a year.
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