ANZ first to raise rates

ANZ bank is the first to announce it will raise rates following the RBA's decision to increase the official cash rate by .25%.

The bank will increase its variable rate mortgage products by 0.25% for new and existing customers effective 12 October. The new rate on the standard variable rate home loan will be 6.06%.

For new customers fixed rate mortgages will also increase by 0.25% for one and two year terms to 5.70% and 6.69% respectively; by .1% to 7.09% for three year terms and by .2% to 7.69% for four year terms. The 10-year term rate will be reduced by .25% to 8.94%.

ANZ is also increasing selected deposit products by up to .50%, effective from the same date.

The lender is reviewing interest rates for credit cards and small business.