Borrowing money

Australia’s ‘Big Four’ Banks Agree to Full 50bp Variable Mortgage Rate Hike | Investment News

(Reuters) – Australia’s ‘big four’ lenders on Wednesday raised variable interest rates on home loans by 50 basis points (bps) a year, fully passing on the central bank’s third straight rate hike to their customers .

Commonwealth Bank of Australia, National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking Corp all raised mortgage rates to match the official 50 basis point cash rate hike announced on Tuesday.

While the new rates for CBA, NAB and ANZ customers will be in effect from July 15, Westpac’s rates will apply from July 20.

The four banks offered a higher term deposit rate of 2.50% per annum for certain savings products for varying deposit terms.

The Reserve Bank of Australia (RBA) raised its key rate to 1.35% on Tuesday, marking a 125 basis point hike since May and the fastest series of moves since 1994 – all to contain the surge in the inflation even at the risk of triggering a recession.

So far Australian lenders have been in step with the central bank to pass on the full rate hike to their clients, expecting to reap the benefits at a time when the country’s property market shows signs of cooling after an exceptional price increase of 22% last year.

(Reporting by Sameer Manekar, Harshita Swaminathan and Savyata Mishra in Bengaluru; Editing by Rashmi Aich)

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