The new Reserve Bank Governor says she's closing monitoring financial conditions, in the wake of a surprise interest rates hike by a major bank

Swap rates have been rising after the Reserve Bank appeared to all but rule out further OCR cuts two weeks ago.

Westpac has now passed the rise on -- yesterday raising its longer-term home loan rates and term deposit rates..

Governor Anna Breman says there's no preset course for monetary policy conditions, and she's keeping a close eye on how conditions track.

She says the central bank's focus will be to see how this affects households and businesses, and if this is in line with what they're expecting.