BankWest raises rates, others to follow

BankWest has raised interest rates on its standard variable home loans by 0.2 per cent, adding $10 per week to repayments on the average $250,000 mortgage. The move follows St George Bank raising its rates by the same margin last week and comes after the Reserve Bank decided last week to leave the cash rate unchanged at 7.25 per cent. Most major lenders have signalled that rates may have to be raised outside of the Reserve Bank’s settings to meet the costs of funding. JP Morgan says the big four banks stand to lose $500 million unless they raise their lending rates. There has been market speculation that BankWest could be sold by its parent company HBOS. NAB and CBA are mentioned in media reports as possible buyers of the Perth based bank.

Source: Business Spectator