Rate action continues as Westpac hikes for third time in a month

Both sub-2% fixed rates go at one of Australia's biggest lenders

Rate action continues as Westpac hikes for third time in a month


By Mike Wood

Westpac has hiked its fixed interest rates for the third time in a month, ditching its last two remaining prices under 2% in the process.

Both the 1- and 2-year rates were previously 1.99%, but both are now set at 2.24%, a rise of 25 basis points. The 3-year rate went up by yet more, a 30 point rise to 2.59%.

4-year and 5-year rates also went up, by 20 and 10 points respectively, taking them to 2.89% and 3.09%.

Westpac’s move leaves NAB as the only holdout among the Big Four in terms of a sub-2% rate, with their 1-year fixed clinging on at 1.99%. Westpac’s 2-year fixed remains the cheapest among the major lenders, as does their 3-year.

Westpac’s subsidiary banks, St George, Bank of Melbourne and BankSA all hiked their rates in line with their parent.

This is the third rate hike at Westpac in the last month: they moved all their fixed rates above 1-year by a uniform 10 basis points ahead of the cash rate decision just over three weeks ago, and then raised their longer term rates just after the RBA officially abandoned their 2024 target.

All of the Big Four have raised their rates multiple times in the last four weeks: CBA, NAB and ANZ twice and now Westpac three times.

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