NAB the first bank to pass through Cup Day rate rise
National Australia Bank, ANZ and Westpac have lifted interest rates for borrowers after the Reserve Bank raised the official cash rate by 0.25 of a percentage point on Tuesday to 4.35 per cent.
On Wednesday, NAB was the first of the big four lenders to say it would pass on the full increase to its standard variable home loan customers from November 17, meaning its lowest advertised mortgage rate will climb from 6.59 per cent to 6.84 per cent a year.
The move comes just a day before its chief executive, Ross McEwan, delivers the company’s 2023 financial results.
ANZ followed suit about two hours later and said it would lift rates by the same amount on November 17. Westpac said it would implement a similar change on November 21. All the banks adjusted savings rates on some deposit accounts by the same 25 basis points.
NAB retail bank executive Rachel Slade, who said this week her customers could withstand the RBA’s Cup Day tightening, said most borrowers were in good shape.
“There may be some people who are more concerned about the first rate rise since mid-year, which is why it’s crucial to reach out to your bank as soon as you can. We’re here to help,” Ms Slade said.
Customers are responding to the cost-of-living crunch by reducing their spending on dining out, fuel and leisure travel, she said. “We’re seeing more customers using budgeting tools than ever before – an important sign that more Australians are closely engaged with their finances.”
NAB said it would also increase its deposit rates in response to the RBA decision, boosting bonus interest on its reward saver account to 5 per cent a year.
RateCity research director Sally Tindall said home loan customers would be “disappointed, but not surprised” by the
Read more on afr.com
