The bank raised variable rates for all home and business loans by 25 basis points.

New Zealand's central bank raised its Official Cash Rate to 2.5%, the first hike in three years, as Middle East tensions drive inflation toward a projected

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

The bank raised variable rates for all home and business loans by 25 basis points.

ASB, BNZ, Westpac and Kiwibank have all now made adjustments to their floating interest rates, in the wake of this week's official cash rate increases.