AMP (ASX:AMP) said it will raise interest rates on all its variable home loans by 0.25%, effective March 23, in response to the Reserve Bank of Australia's latest cash rate increase, the bank said in a statement on Wednesday.

The bank will also increase AMP Bank GO savings rates by 0.25%, bringing Personal Save to 4.85% per annum and Business Save to 4.5% per annum for balances up to AU$500,000.

The company's shares rose 1% in recent Wednesday trade.