By Robert Carry
The country’s four largest banks took just hours to pass on the Reserve Bank of Australia’s (RBA) 25 point cash rate hike to their customers.
ANZ was the fastest to respond, releasing a statement saying it would be passing on the full 0.25% increase to its mortgage customers within minutes of the RBA’s statement earlier this week.
Westpac, Commonwealth Bank and National Australia Bank all released statements on their plans to increase rates before the end of the day, effective from next week.
The prompt response from the banks in matching the rate increases is in stark contrast to the frequently lengthy time it took the institutions to mirror the RBA when it lowered the cash rate during the global financial crisis.
However, Westpac recently released a statement saying that its rates would remain in line with RBA guidelines for the foreseeable future.
The RBA has re-affirmed its position that it would like to see interest rates return to a more ‘normal’ setting – believed to be in the region of 5% or above. This will mean a further six successive 25 point rises may be in store for mortgage holders.
The latest changes will see Westpac and ANZ’s standard variable rates hit 6.31% while National Australia Bank and Commonwealth will reach 6.24%
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