In May 2013 the cash rate was reduced from 3.00% to 2.75%, and Tuesday's 25 basis point hike was widely predicted.

This is despite higher-than-expected annual inflation of 7.3%, of which led Westpac chief economist Bill Evans to call for a 50 basis point hike.

New highs in term deposit space

On Tuesday morning Teachers Mutual Bank increased rates on its 11-month term deposits to take the crown, according to InfoChoice's product database.

The rate is now 4.25% p.a. which is 20 basis points higher and with a term one month shorter than the next-highest in Judo, Macquarie and AMP, which were the market leaders last week in the 12-month space.

The minimum deposit is $1,000, and Teachers Mutual subsidiaries UniBank and Firefighters Mutual also increased by the same margins.

Greater Bank now also has a 12-month rate of 4.00% p.a., with a minimum deposit of $5,000.

There are now at least six banks with one-year term deposit rates in excess of 4.00% p.a. according to InfoChoice's database - Greater Bank, AMP, Macquarie, Judo, Community First, and People's Choice.

Add Teachers Mutual's 11-month rate to the mix and that's seven.