Westpac puts rates up across the board

Westpac has raised rates on a wide range of loans and deposit products. The standard variable home lending rate is up by 0.45% reflecting continuing wholesale funding pressures and the Reserve Bank of Australia’s (RBA) 0.25% increase to the official cash rate.

Westpac’s standard variable home lending rate will now stand at 6.76% per annum. Business loan rates will rise by 0.25%. The interest rate changes for home and business loan rates are effective on Friday December 4 2009.

In order to attract customer deposits, Westpac is offering rates on some term deposits at more than 3% above the official RBA cash rate including a one-year rate at 6.8%. In addition, Westpac will also pass on the 0.45% increase to online savings account Westpac e-Saver.

“The interest rates Westpac is offering for both online savings accounts and term deposits are among the highest we’ve ever offered and reflect our strong commitment to lessening our reliance on volatile offshore term-funding markets,” Westpac Group Executive Retail and Business Banking Peter Hanlon said.

Credit card rates will also increase by between 0.25%-0.35%.

Following the 0.45% rate rise, repayments on the average $250,000 household mortgage will increase by approximately $71 per month.

Peter Hanlon that Westpac continued to be mindful of the impact of interest rate changes on small business owners which was why the bank was only passing on 0.25% to its business loans and had held off passing on any increase when the RBA increased the official cash rate in November.

Source: Westpac

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