Westpac has followed National Australia Bank and ANZ by hiking rates. Westpac says it'll hike:
- WPAC is increasing interest rates on lines of credit held against residential property
- Rates set in reference to a bill margin will increase by 0.23 of a percentage point
- Rates on various other types of business loans, including overdrafts, will lift by 0.19 percentage points
- Will increase interest rates by 0.3% on a range of business loans
- Rates on lines of credit will increase by 0.17 of a percentage point for customers with a Westpac-branded loan, and 0.15 of a percentage point for customers of St George
WPAC cite:
- A lift in banks' wholesale funding costs
- Rules requiring banks to be better capitalized
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The market will be watching how the RBA assesses higher funding costs like this.
WPAC, NAB and ANZ are 3 of the big 4 Australian banks. The next domino should be CBA.