Commonwealth Bank, NAB, Westpac and ANZ lift interest rates following RBA’s decision
Commonwealth Bank has become the first of the Big Four to lift interest rates following the Reserve Bank of Australia’s decision on Tuesday. It was closely followed by NAB, ANZ and Westpac.
Commonwealth Bank has become the first of the Big Four to lift interest rates following the Reserve Bank of Australia’s decision on Tuesday.
In a decisive 8-1 vote, the central bank lifted the cash rate from 4.1 per cent to 4.35 per cent, its third hike for the year. Interest rates have now returned to the level they were in February 2025, undoing the effects of the RBA’s cuts last year.
CBA said it would increase home loan variable interest rates by 0.25 per cent in response to the RBA’s rate hike decision. All CBA home loan variable rate changes announced today will be effective on May 15.
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“Our focus is on supporting customers to stay on top of their finances with practical tools, clear guidance and access to help when it’s needed,” he said.
CBA was closely followed by National Australia Bank and ANZ, which both said would also pass on Tuesday’s 0.25 basis-point hike in full. Both new rates from NAB and ANZ take effect from May 15.
Westpac will also increase home loan variable interest rates by 0.25 per cent for new and existing customers, also effective May 15.
For deposit customers, Westpac Life total variable rate, with bonus interest, will increase by 0.25 per cent to 5 per cent. The standard variable rate on Westpac eSaver will increase by 0.25 per cent.
Australia’s fifth-biggest mortgage lender, Macquarie, waited just three minutes after the RBA’s decision to announce it was passing on the hike in full.
“In response to the RBA’s announcement earlier today, we will be increasing both our variable home loan rates, and the interest rates available on our everyday variable rate bank accounts,” head of personal banking Ben Perham said.
The changes — which come into effect on May 22 — will see customers receive an ongoing variable rate of 2.75 per cent on all balances held in a Macquarie transaction account and 5 per cent on balances up to $2 million held in a Macquarie savings account.
