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Banks pass on latest rate hike

Australia’s major banks have passed on the Reserve Bank’s rate hike for June.

On the heels of the Reserve Bank of Australia’s (RBA) decision to up the official cash rate to 4.1 per cent during the June monetary policy meeting, the all four of the banks have announced they will be passing on the rise to customers.

Only mere hours after the RBA’s decision, Westpac announced interest rate changes for home loan and deposit customers.

For Westpac’s home loan customers, its home loan variable interest rate will increase by 0.25 per cent per annum (p.a.) for new and existing customers as of 20 June.

The major bank also announced a new special term deposit offer of 4.50 per cent p.a. for 12–23 months, effective 9 June, while its savings rates are still under review.

Westpac chief executive consumer and business banking, Chris de Bruin, said: “We understand interest rate increases put more pressure on household budgets. The majority of our customers are managing okay, but we know with each rate change it’s getting more challenging.

“We’re reaching out to some customers who may need additional support and have competitive rates available for those rolling off fixed loans to make the change easier.

“For customers in financial difficulty we are here to help and encourage them to call us early if they’re concerned.”

The Commonwealth Bank of Australia (CBA) announced it will increase interest rates across a number of its savings products (NetBank Saver, GoalSaver, and Youthsaver all increased by 0.25 per cent p.a.), along with lifting its home loan variable interest rates by 0.25 per cent p.a.

For CBA, all savings and home loan variable rate changes will come into effect on 16 June 2023.

Customers with ANZ will see variable interest rates across the major bank’s home loan products increase by 0.25 per cent as of 16 June.

In addition, the major bank is offering a new 12-month Advance Notice term deposit rate of 4.6 per cent p.a. (as of 9 June) as it continues to review other deposit rates.

ANZ group executive Australia retail, Maile Carnegie, said: “We know rate changes affect customers differently. Our team is trained to support customers and their specific circumstances.

“We have several tools available to help our customers understand and manage their home loans, including our Home loan repayment calculator, which enables customers to see how this change will affect their repayments.”

Rounding out the major banks, National Australia Bank (NAB) has announced its standard variable home loan interest rate will increase by 0.25 per cent p.a., effective from 16 June 2023.

NAB group executive for personal banking, Rachel Slade said the major bank is actively seeking customers who may require assistance.

“Each rate increase since May last year has been incrementally challenging for Australian households. We know from speaking with our customers that most are in good shape, however there are some who need our additional support.

“We’re proactively reaching out to our customers to offer help and have a range of options available to assist them through the rising cost of living,” Ms Slade said.

Non-major bank, AMP Bank, has also announced it will pass on the RBA’s rate hike to its customers.

AMP interest rates for variable home loans will increase by 0.25 per cent p.a. as of 9 June 2023 for new customers and 12 June 2023 for existing customers.

[RELATED: Further tightening may be required as house prices rise]

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