The Reserve Bank of Australia raised the cash rate by 25bps to 4.10% in its June 2023 monetary policy decision — how are major banks reacting?
Despite anticipating the RBA to keep the cash rate on hold this month, Westpac is the first to react to the rate hike among the major banks.
Here are the changes:
- Home loan variable interest rates will increase 25bps for new and existing customers, effective 20 June.
- Westpac will roll out a new special term deposit offer of 4.50% for 12 to 23 months, effective 9 June.
Westpac Chief Executive for consumer and business banking Chris de Bruin said each rate change is getting more challenging for many borrowers.
"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," he said.
“For customers in financial difficulty we are here to help and encourage them to call us early if they’re concerned."
CommBank announced that it will increase its home loan variable interest rates by 25bps effective 16 June 2023.
The bank also rolled out its new savings rates, also effective starting 16 June 2023.
- NetBank Saver standard variable interest rate will increase by 25bps to 2.20% p.a. The 5-month introductory variable interest rate will increase by 25bps to 4.75% p.a.
- GoalSaver with bonus interest rate will increase by 25bps to 4.65% p.a., comprising a standard variable rate of 0.40% p.a. and bonus interest rate of 4.25% p.a.
- Youthsaver with bonus interest rate will increase by 25bps to 4.75% p.a., comprising a standard variable rate of 2.35% p.a. and bonus interest rate of 2.40% p.a.
ANZ will be increasing its variable interest rates by 25bps starting 16 June 2023.
It will also be offering a new 12-month Advance Notice term deposit rate of 4.60% p.a. effective 9 June 2023.
NAB will be rolling out a 25bps increase in its variable interest rate effective 16 June 2023.
The bank will also increase rates for the following products, effective from 16 June 2023:
- NAB’s Reward Saver bonus interest rate will increase by 25bps, bringing the total bonus interest rate to 4.75% p.a.
- NAB’s 12-month Term Deposit will increase by 40bps to 4.60% p.a.