Banks Pass on RBA Rate Hike in Full as Cash Rate Hits Decade-High

Australia's major banks have passed on the latest Reserve Bank of Australia (RBA) rate hike in full, increasing variable home loan rates by 0.25 per cent from next month.

The RBA lifted the cash rate to its highest level in more than a decade, reaching 4.6 per cent, an increase of 0.25 per cent, and the fourth hike this year.

Commonwealth Bank, NAB, Westpac, and ANZ announced increases to home loan variable interest rates by 0.25 per cent per annum, effective October 9.

CBA's group executive retail banking, Angus Sullivan, said the RBA's decision came during 'persistent inflation and ongoing global uncertainty', which are adding to economic pressures.