Kiwibank has removed the weight if interest rates by 0.25%, following similar rises that had been announced in recent days, by most of the other major banks.

The increase comes following the Reserve Bank's increase in the authorized cash rate by 0.25% previously this month.

Kiwibank said floating mortgage rates, which are variable and revolving, will see an increase by 0.25% to 5.90% from tomorrow for new customers and July 6 for on hand customers.

The bank has as well augmented its six-month fixed rate from 5.99% to 6.10% and the one-year rate from 6.35% to 6.45% to be in effect from tomorrow.

ANZ and National Bank made announcement regarding increases in their changeable mortgage and savings account rates of 25 basis points last Friday.

ASB was the initial bank to break ranks, raising its floating rate by 25 basis points to six per cent last Thursday.

In the meantime, Kiwibank has as well introduced a new home loan offer that caps the average floating rate to no less than 6.50% for 12 months.