AMP Bank lifts interest rates beyond RBA rise

AMP Bank has become the first bank to increase interest rates for existing customers by more than the Reserve Bank of Australia’s latest cash rate rise, as it tries to turn around shrinking profit margins on home loans.

AMP Bank has aggressively undercut rival lenders on home loans in the past two years, as part of AMP’s strategy to grow its banking business to offset the long-term decline in its once-dominant wealth management arm.