Westpac is forecasting growth to accelerate to over 4 per cent this year. Photo / File
Westpac is forecasting growth to accelerate to over 4 per cent this year. Photo / File
Westpac Bank is to increase its headline floating home loan rate for high equity borrowers by just 10 basis points in the last of the major banks to move in the wake of the Reserve Bank's official cash rate hike.
New Zealand's central bank increased cash rate from 2.5 percent to 2.75 per cent last week on the back of New Zealand's strengthening economy.
Westpac said it would absorb part of the increase in a bid to remain competitive. The bank said its "Choices Floating" rate would rise to 5.74 per cent but all other floating rates would rise by 25 basis points.
Interest on its short term deposits would also rise by 25 basis points.
The rates would change from tomorrow for new customers and on April 11 for existing customers.
Ian Blair, Westpac general manager retail, said it was committed to keeping its floating rates extremely competitive after a period of historical low rates.
"We want New Zealanders to know we are open for business and will continue to offer competitive interest rates."
He also urged customers to ensure their loans were structured to suit their circumstances in light of further potential increases in the cash rate.
