major banks review rates

AAP

Australia's five biggest banks said they were reviewing their interest rates after the central bank on Tuesday hiked the official cash rate.

In a widely expected move, the Reserve Bank of Australia lifted the official cash rate by 25 basis points to 7.0 per cent.

"The Commonwealth Bank is currently reviewing its rates," said a spokesperson from CBA, which is Australia's biggest mortgage lender.

National Australia Bank Ltd and Westpac Banking Corporation Ltd gave similar responses to CBA.

ANZ Banking Group Ltd said it was inevitable that the latest lift in the official cash rate would be passed onto mortgages.

"It's inevitable there will be some flow-on to mortgages and other lending rates following the RBA increase in the official cash rate today," an ANZ spokesperson said.

"We're going to take some time to review rates on each of our products before we make a final decision."

Australia's fifth largest St George Bank Ltd and BankWest, which is owned by British bank HBOS plc, said their rates were under review.

But on the deposits side, BankWest has lifted interest rates on its deposit products, effective from February 18.

Going even further than the RBA, BankWest lifted the 12 month introductory rate available to new customers on its TeleNet Saver and Business Telenet Saver by 30 basis points each to 7.50 per cent and 7.15 per cent respectively.

The ongoing Telenet Saver rate will increase by 25 basis points to seven per cent and the ongoing Business Telenet Saver will increase to 7.15 per cent.

ING Direct and Rabobank also lifted rates on their savings products.

ING said rates on both its no-fee Savings Maximiser and Business Optimiser would increase by 25 basis points to 6.65 per cent and 25 basis points to 6.60 per cent respectively, effective from February 18.

Rabobank has lifted the standard interest rate on its RaboPlus on-line savings deposit account to 7.05 per cent per annum, effective today.

RaboPlus also lifted interest rates on its term deposits by 20 basis points to 7.75 per cent from 7.55 per cent.