Australian banks raise variable mortgage rates as RBA lifts cash rate to 4.6%
Australia's major banks will increase variable home-loan rates by 0.25 % from early October after the Reserve Bank of Australia raised the cash rate to 4.6 %, its highest since 2011.
The Reserve Bank of Australia has lifted the cash rate by 0.25 % to 4.6 %, the highest setting since November 2011 and the fourth increase this year. Following the decision, the country's four largest lenders - Commonwealth Bank, National Australia Bank, Westpac and ANZ - will raise their variable home-loan interest rates by a quarter of a percentage point starting October 9. Angus Sullivan of Commonwealth Bank linked the move to persistent inflation and global uncertainty, while NAB’s Ana Marinkovic urged customers facing higher repayments to contact the bank promptly.
Westpac chief Carolyn McCann acknowledged the added cost-of-living strain for households, and ANZ said it is reviewing other rates. Macquarie Bank will also adjust its variable mortgage and deposit rates by 0.25 % from October 15, affecting both borrowers and savers.
Why it matters
Higher mortgage rates increase household debt costs, influencing consumer spending and the broader Australian economy.
How this story developed
- Sep 17 Fed’s Unanimous Rate Hike Signals Hawkish Shift, Sparking Market Unease
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 27 The Reserve Bank of Australia is expected to raise the cash rate to 4.6% on Tuesday, the highest level since 2011, as inflation remains above target.
- Sep 29 The RBA voted to raise the cash rate to 4.6%, its highest in 15 years.
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