Westpac has followed its rival the National Australia Bank by raising its variable mortgage rates today to 5.32 per cent.
The owner-occupier rate rise will take effect from March 24th, and came within 24 hours of NAB making its announcement.
Prime Minister Malcolm Turnbull encouraged Australians to shop around if they were unhappy with the interest rate rise.
"If they don't explain it then NAB customers will go somewhere else and I'd encourage them to do so," Mr Turnbull said.
Mr Turnbull talked up his decision to haul banking executives before a House of Representatives committee to explain their practices.
But Mr Shorten, who backs a royal commission into the sector, wanted him to go further.
"Just how out of touch is Malcolm 'don't blame me, I'm only the prime minister' Turnbull have to be?" he told reporters in Canberra.
The share market has closed higher after the financial sector rallied as news came that Westpac and the National Australia Bank are lifting variable mortgage rates to fund their increased borrowing costs.
The benchmark S&P/ASX200 was up 13.8 points, or 0.24 per cent, at 5,799.6 points at 1615 AEDT, and the All Ordinaries index was up 13.7 points, or 0.24 per cent, at 5,841.2 points.
The SPI200 futures contract was up two points, or 0.03 per cent, at 5,787 points.
-with AAP
