Big Banks Set to Hike Mortgage Rates Amid Rate Rise
The Reserve Bank's quarter-percentage-point rate rise has prompted Australia's big four banks to pass on the increase to home owners, adding $122 in monthly repayments on a standard $800,000 mortgage. This is despite recent data showing that total offset account balances are near record highs and overdue home loan repayment rates remain low.
RBA governor Michele Bullock has not ruled out further pain for households, with analysts predicting more rate rises could exacerbate early signs of stress in parts of the economy. Head of Australian bank research at UBS, John Storey, said it was 'all but inevitable' that big banks would pass on the rate rise.
Macquarie Bank has already announced it will pass on the full 25-basis-point increase to home loan borrowers, with the change taking effect from October 15. Savers with deposits in many of Macquarie's accounts will also receive a similar boost.