(Reuters) – The Australia and New Zealand Banking Group joined National Australia Bank (OTC: NABZY) on Friday to raise its variable home loan rate, passing on the central bank’s 50 Basis Points (bps) Full rate hike to client.
Westpac Banking (NYSE: WBK) Corp and Australia’s largest bank Commonwealth Bank of Australia (OTC:
CMWAY) at the Reserve Bank of Australia (RBA) raised their cash rate for the fifth time since May Mortgage rates are also likely to rise after the hike to a seven-year high2. 35%.
New rates for ANZ and NAB customers to take effect in September 16, they said.
Both lenders added that interest rates on savings accounts are still under review.
So far, Australian lenders have been in lockstep with the RBA to pass on the full rate hike to their clients, expecting a one-off Gains come as the nation’s housing market shows signs of cooling.
The country’s home prices in August saw their biggest increase in 40 years due to rising interest rates and cost-of-living pressures, creating a demand gap, Threats to family wealth and confidence.