All big four banks raise interest rates

ANZ said its standard variable rate (SVR) on home loans will increase by 25 basis points to 7.41 per cent, the second highest of the big four banks.

Interest rates on selected deposit products, business loans and credit cards will rise by the same amount, ANZ said in a statement on Tuesday without specifying when this would occur.

ANZ's chief of Australian operations, Phil Chronican, said it was in the interests of customers and the wider economy for the bank to continue absorbing higher funding costs.

"We will carry on doing all we can to keep consumer and small business lending rates as low as possible, which is why we've decided to only pass on today's official cash rate increase," he said.

Commonwealth Bank was the first of the big four to pass on the RBA rate rise, with National Australia Bank and Westpac also matching the central bank's rate rise on Tuesday.

The standard variable interest rate on mortgages offered by the big four banks currently stands at 7.51 per cent at Westpac, 7.41 per cent at ANZ, 7.36 per cent at CBA and 7.24 per cent at NAB.

Source AAP