Bankwest increases rates by 40bps

Bankwest has joined the big four banks and increased its standard variable home loan rate above the official increase of 0.25 basis points.

The Commonwealth Bank subsidiary said the decision to lift rates by 0.4 of a percentage point was in response to persistently higher funding costs and the Reserve Banks decision to lift rates on Melbourne Cup day.

"Bankwest Retail will be lifting its standard variable home loan rate from 7.30 per cent to 7.70 per cent," a spokesman said.

"The decision to lift rates was not taken lightly," he said.

"The rate rise reflects the increased cost of funds affecting the entire banking industry.

"Wholesale funding markets remain at a level substantially higher than pre-global financial crisis levels, meaning we have to replace cheaper pre-GFC wholesale money at these higher rates," said the spokesman.

Bankwest still has one of the lowest standard variable home loan rates of the major banks.

NAB - 7.24, up 43 to 7.67
Bankwest - 7.30 up 40 to 7.70
ANZ - 7.41 up 39 to 7.80
St George - 7.43, up 37bps to 7.80
Bendigo - 7.45, up 35bps to 7.80
CBA - 7.36, up 45 to 7.81
Westpac - 7.51 up 35 to 7.86