Since May the major banks have not missed a beat, passing on each RBA cash rate increase in full to variable-rate mortgage holders. 

However the same can't be said for their deposit products.

This trend is expected to continue following the first cash rate decision for the year, yet signs are beginning to emerge that the peak of the mountain may be in sight. 

AMP Chief Economist Shane Oliver said the RBA has now exceeded the 2002-2008 tightening cycle of 300 basis points spread over 71 months, making it the biggest tightening cycle in the past 30 years.

“A 0.25% rise in the cash rate on Tuesday, if passed on to mortgage holders as we expect, will add another $80 to the monthly payment on a typical $500,000 mortgage which will take the total increase in monthly payments since April 2022 to $980 a month or nearly $12,000 a year,” Dr Oliver said. 

“With RBA rate hikes already getting traction - indicated by recessionary levels for consumer confidence, the collapse in housing indicators, signs that retail sales and the jobs market are starting to slow - and signs that global and local inflationary pressures are peaking, our view remains that we are near the top in rates.” 

Following nine increases in ten months, PRD Chief Economist Dr Asti Mardiasmo noted sentiment seems to be people are already expecting an increase and are safeguarding themselves for another increase. 

“Because of this increased awareness and ‘accepted situation’ there is a potential for a steadier property market this year, more like what we saw pre-COVID-19, but unfortunately, not with pre-COVID prices given there is markets operating within markets within markets,” Dr Mardiasmo told

See how the major banks reacted after December 2022's increase.


Below is a selection of variable-rate home loans from the major banks.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.84% p.a.
6.88% p.a.
Principal & Interest
6.84% p.a.
7.16% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.


ANZ has become the first of the big-four banks to respond to February's RBA decision within a matter of hours, detailing its intent to pass on the cash rate increase in full to both variable rate mortgage holders and savers. 

ANZ's 0.25% increase for variable rate mortgage holders will come into effect from 17 February 2023, while the 0.25% increase to ANZ Plus Save accounts will take place a few days prior from 14 February 2023. 

ANZ Group Executive Australia Retail Maile Carnegie said at a time of increased cost of living and rate changes, some customers will be feeling greater financial pressure.

“We know many customers are looking closely at savings rates," Ms Carnegie said. 

"(ANZ) will again increase the rate on our ANZ Plus Save account, to take it to 4.00% p.a. For customers that want greater certainty with their savings rate, last week we increased our 12-month Advance Notice term deposit to 4.10% p.a."


The second of the big-four to respond Tuesday evening following February's RBA decision was NAB, detailing it will continue to stick to the trend of passing on the cash rate increase in full to variable rate mortgage holders. 

In similar fashion to ANZ, NAB's 0.25% increase for variable rate mortgage holders will come into effect from 17 February 2023.

NAB is yet to announce an increase to savings accounts, with savings rates remaining 'continually under review'. 

NAB Group Executive for Personal Banking Rachel Slade noted NAB acknowledges the RBA’s actions to bring inflation under control by increasing the cash rate, yet recognises that there are some Australians who will find this challenging.

“I encourage anyone who is worried about their situation to reach out to their bank," Ms Slade said. 

“What we do know is that people are more engaged with their finances than they’ve been in a long time and that they are making their own adjustments to spend more ‘thoughtfully’ on non-essential purchases."

Ms Slade detailed NAB has a dedicated team to listen to each customer’s individual situation and offer tailored solutions in the face of financial pressurs – whether that’s reduced payment arrangements, payment breaks or restructuring their loan.  


Nearly two days post the RBA's February decision, CommBank has responded highlighting its intent to pass on the 0.25% cash rate increase in full to variable rate mortgage holders from 17 February 2023. 

Savers are also set to reap the benefits, with Australia's largest bank announcing an increase of up to 0.75% p.a. across some savings accounts. 

CommBank Group Executive Retail Banking Angus Sullivan noted the savings rates increases build on higher rates CommBank has previously announced over the past few months.

“Our comprehensive range of savings products mean that customers can get more from their savings by choosing a product that best suits their needs," Mr Sullivan said. 

“For instance, NetBank Saver offers an introductory bonus rate for five months for customers opening their first NetBank Saver account with us, while GoalSaver can provide you with bonus interest when you grow your balance each month.”


Following CommBank's lead, Westpac has announced its decision to pass on the 0.25% cash rate increase in full to variable rate mortgage holders. 

Unlike ANZ, NAB and CommBank, Westpac's increase will take place from 21 February 2023.

Savers will receive the same 0.25% increase from 21 February, with Westpac's new rates across Westpac Life and eSaver accounts now reaching 4.00% p.a. 

Westpac Chief Executive of Consumer & Business Banking Chris de Bruin said increases to Westpac Life and eSaver accounts are aimed to support customers as they think about their financial goals in the year ahead.

"We know at this time of year some customers are reassessing their household budgets and looking for ways to manage their money," Mr de Bruin said.

“While the majority of our customers continue to be well-placed to navigate the rising rate environment, we know some might be feeling uneasy amid growing cost of living pressures.

"If customers are concerned, we encourage them to give us a call - the sooner they get in touch the better placed we are to provide support." 

Image by CBA, ANZ, NAB & Westpac

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