UPDATE @ 4.00PM | Westpac has followed the lead of NAB by passing on today’s interest rate rise in full.
Westpac will increase variable home loan rates by 25 basis points.
That will come into effect from October 18.
Westpac will also increase the interest rate on selected savings accounts by 0.25 per cent.
Commonwealth and ANZ are yet to announce its intentions but it’s widely expected they will also pass on the rate hike in full.
EARLIER @ 3.30PM | The banks have wasted little time in passing on today’s interest rate rise with NAB becoming the first to move.
The Reserve Bank today increased the official cash rate by 25 basis points to 2.6 per cent.
Most experts had been predicting another 50 basis points increase today but the RBA has opted to ease its foot off the pedal.
“Higher inflation and higher interest rates are putting pressure on household budgets, with the full effects of higher interest rates yet to be felt in mortgage payments,” RBA Governor Philip Lowe said in a statement.
Today’s interest rate increase will add around $110 a month to repayments on a $700,000 mortgage.
NAB took less than two hours to confirm it would pass on the full 25 basis points increase in full.
That will come into effect from October 14.
“If you are worried about the impact of increasing interest rates, you have our full support,” AB Group Executive for Personal Banking, Rachel Slade said
“Our home loan specialists can help with a financial health check to make sure you’re on the best rate for your situation and our NAB Assist team is on standby for those who need additional help.”
However, savers have not been afforded the same luxury this time around with NAB saying it is still reviewing rates on deposit accounts.
The other major banks are expected to quickly follow NAB’s lead.
