How the big four banks reacted to fourth RBA rate hike

The Reserve Bank has lifted the cash rate by 25 basis points to 4.60%, taking the nation's official interest rate to its highest level since 2011.

In its post-meeting statement, the RBA said inflation remains elevated and that "some of the upside risks flagged in August are materialising".

The Board pointed to surging global energy prices, ongoing domestic capacity pressures and stronger-than-expected inflation outcomes as key reasons for today's widely expected hike.

The Reserve Bank's rate-setting committee reiterated that inflation remained "too high" and warned it was prepared to tighten policy further if required to return inflation to target.

Australia's major lenders had been in line in their expectations heading into the meeting, with CBA, NAB, ANZ and Westpac all forecasting a 25 basis point increase. 

Here's how the big four banks responded to the fourth RBA hike of 2026. 

CBA

A day after the RBA lifted the cash rate to 4.6%, Commonwealth Bank of Australia announced it would pass on the full 25 basis point hike to all variable home loan customers. 

The rate increase will take effect on 9 October. 

CBA retail banking group executive Angus Sullivan said the bank's teams were "ready to provide support" to customers by helping them understand their options. 

"For some customers, the immediate priority might be understanding how their repayments and budget may change and where adjustments can be made," Mr Sullivan said. 

"For others, it may be having a more detailed conversation with us about their finances."

Customers who are concerned about their financial circumstances can contact CBA through their usual banking channels, while those experiencing hardship can access support through the bank’s Financial Assistance Solutions Team. 

"Customers have different needs and goals, and we encourage anyone interested in understanding their options to speak with a home lending specialist about what may be right for them," Mr. Sullivan said.

Westpac 

Westpac will also increase variable home loan rates by 0.25% p.a. from 9 October. 

The rate increase will automatically apply to both owner occupier and investment property loans on the effective date. 

According to Westpac's repayment calculator, the change would increase minimum monthly repayments by around $79 on a $500,000 home loan paying principal and interest (P&I). 

Customers experiencing hardship may contact the bank on 1800 067 497 for support.

ANZ

ANZ also announced a 0.25% p.a. increase to its variable home loan rates, matching the moves by its big four peers.

ANZ will increase variable interest rates on home loans, residential investment loans and line-of-credit home loans starting 9 October.

The change will apply to both owner occupier and investment borrowers on P&I and interest-only repayments. 

Customers can access more information about how the increase will affect their repayments through ANZ's internet banking and mobile app.

NAB 

NAB will increase its variable home loan interest rates by 0.25% p.a. effective from 9 October. 

In a statement released late Wednesday, NAB personal banking group executive Ana Marinkovic encouraged customers concerned about their finances to seek support early. 

"Many homeowners will be looking at what this decision means for their household budget and monthly repayments," Ms Marinkovic said.

"Some customers may be concerned about the impact of higher repayments, particularly as household budgets remain under pressure."

Customers experiencing financial difficulty may reach out to NAB Care on 1800 701 599.

"Our focus is on helping customers understand what has changed and where they can turn for support if they need it," Ms Marinkovic added.

CBA says November hike now 'live', NAB sees rates staying on hold

In a statement following the decision, CBA senior economist Ashwin Clarke said that while CBA's base case remains for rates to stay unchanged until mid-2027, a November hike is now "live".

Despite Governor Bullock acknowledging that monetary policy is considered somewhat restrictive, Mr Clarke said the Board appears to "have little tolerance for further upside surprises".

"The risks remain tilted to a November hike," he said. 

CBA expects August headline inflation to pick up to 4%, while trimmed mean to remain steady at 3.6%. 

"If this happens, the most likely print for the policy‑relevant quarterly trimmed inflation would be 1.0%, versus RBA implied forecast in August of 0.84%," Mr Clarke added. 

CBA forecasts today's rate hike to slow growth and gradually bring inflation back to target. 

"So we still expect two rate cuts in late 2027, in August and November, which would bring the cash rate down to 4.1%."

NAB argues that despite the "hawkish hike", the post-meeting press conference suggests the RBA is done tightening for now. 

"The RBA Governor stated repeatedly in her press conference that the strategy of bringing inflation down subject to preserving gains in the labour market remains intact," NAB's Sally Auld said.

According to NAB's chief economist, this approach suggests policymakers still favour "a more incremental" path for policy adjustment, thereby supporting NAB's view that the next move will be a hold. 

"With policy now considered restrictive (or close to) by the Monetary Policy Board, each decision to hike from here is, by definition, a tougher call," Ms Auld said.

"And so for now, we continue to forecast the RBA on hold with the risk that further tightening may be required."