Westpac First Big Australian Lender to Raise Mortgage Rates

Westpac Banking Corp. raised its key mortgage rate, the first of the nation’s biggest banks to decide passing on higher funding costs is worth the risk of further reputational damage. Westpac shares extended gains after the announcement to close 2.7 percent higher -- the biggest gain in more than two months. Shares of the other big banks -- Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia and National Australia Bank Ltd. -- also rallied on the news.