Macquarie Bank to raise variable home loan rates after RBA hike

On Tuesday the Reserve Bank of Australia announced a further 25-basis-point hike, taking the cash rate to 4.60 percent, the highest level since November 2011. In response, Macquarie Bank disclosed that it will increase the reference rate for variable home loans by 25 basis points starting 15 October, making it the first major lender to implement the change. Ben Perham, who leads personal banking at Macquarie, confirmed that the bank will also raise the variable rates on its transaction and savings accounts from the same date.

He encouraged borrowers who are concerned about repayment to contact the bank, noting that financial assistance may be available. The move follows three earlier rate hikes this year, in February, March and May.