Westpac lifts floating rates: The OCR lifted from 2

Westpac has lifted its floating rates by 25 basis points after Wednesday's official cash rate increase.

The OCR lifted from 2.25 percent to 2.5 percent, in a move that was not a surprise to markets.

Commentators said an increase to the OCR had already been priced in to wholesale rates, so fixed rates were not expected to move.

Floating rates, however, tend to move with the cash rate.

Westpac said it was increasing its variable rates for borrowers and savers.

"We'll continue working hard to support both borrowers and savers through an interest rate tightening cycle," says Westpac NZ managing director of product, sustainability and marketing, Sarah Hearn, said.

"The large majority of our home lending is on fixed terms, and there are no changes to any of our fixed rates today.

"Meanwhile, a rising OCR will likely mean good news for savers. We supported them through the last year by holding our Notice Saver unchanged even as the OCR fell. This proved highly popular with savers, and we think our 3 percent rate continues to offer great value.

"Overall, we've seen our customers cope well with the economic uncertainty of the past few months. However, we encourage anyone who's concerned about their finances to come and talk to us, and so we can make a plan to support them."