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

Via SMH

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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.