Price-taker Bendigo ready to follow

An increase in margins on home loans would suit Bendigo Bank quite well, with an additional 10 basis points sending $30 million a year straight to the bottom line.

Chief executive Mike Hirst said Bendigo was a price taker in the home loan market but in effect encouraged major banks to lift their interest rates so Bendigo could follow.

"The issue of whether there will be a rise in rates one way or another lies in the hands of the majors."

Hirst pointed out that major banks had lifted margins on many business loans already.

"We would consider any response carefully in light of our relationship with our customers," Hirst said.