The Reserve Bank of Australia’s latest interest rate hike is set to squeeze household budgets further, with four major banks confirming they will pass on the full 25 basis point increase to mortgage customers. The cash rate now stands at 4.85%, its highest level since December 2008, after the central bank’s decision on Tuesday. Macquarie was the first to announce the change, followed by Westpac, NAB, and Commonwealth Bank, with the adjustments taking effect from Friday, November 13.
For borrowers, the impact will be immediate. A $500,000 mortgage will see monthly repayments rise by about $77, adding to a total increase of $380 since earlier hikes. Those with a $700,000 loan will face an extra $107 per month, while a $1 million mortgage will add $153 monthly, bringing the total increase to $759.
Westpac’s consumer chief executive, Carolyn McCann, acknowledged the strain on households, particularly those already adjusting to multiple rate increases this year. She encouraged customers facing financial pressure to seek support. Meanwhile, ANZ had not announced its plans by Wednesday afternoon.
The Reserve Bank’s decision marked the fifth rate rise this year, with Governor Michele Bullock indicating the board would assess the economic impact before signaling further moves. While borrowers brace for higher repayments, savers see limited benefits. Westpac raised the maximum rate on its Spend&Save account to 6.20% and its Life bonus saver account to 5.50%, but only for customers meeting specific conditions. NAB has yet to announce any savings rate changes.