How CBA, ANZ, NAB and Westpac responded to October’s cash rate rise
With the RBA having increased the cash rate 25 basis points in October, customers anticipate major banks will pass on this increase in full to mortgage rates.
Savings rates on the other hand remain a mystery, with CommBank and Westpac the only two major banks to pass on increases to savings rates last month following the RBA’s September decision.
ANZ’s app-only digital platform ANZ Plus increased savings rates to remain competitive with the likes of Bank of Queensland, ubank and ING.
PRD Chief Economist Dr Asti Mardiasmo said the RBA has a historical pattern of six to seven successive cash rates in the past, before holding the rate steady to see how it translates into the economy.
“By RBA historical pattern we might see a break from November onwards,” Dr Mardiasmo told Savings.com.au.
PropTrack Senior Economist Eleanor Creagh said the economy has entered the tightening cycle with strong momentum.
“Although consumer confidence has fallen, the labour market remains tight, the unemployment rate is at a 48-year low, spending is yet to slow, and business conditions remain strong,” Ms Creagh said.
This page will detail reactions across the big-four banks following the RBA's latest cash rate hike - check back here regularly for the latest information.
NAB
The first of the big-four to react to the RBA's October decision on Tuesday was NAB, flagging its intent to pass on the full 0.25% increase to variable mortgage holders from 14 October 2022.
At this point, NAB will not be increasing accounts for savers, detailing the fact that they have made more than 30 rate increases on savings products since 1 May.
NAB Group Executive for Personal Banking, Rachel Slade, said NAB was focused on supporting customers.
“If you are worried about the impact of increasing interest rates, you have our full support,” Ms Slade said.
Westpac
The second of the big-four to react following the RBA decision was Westpac, increasing rates for variable mortgage holders by 0.25% from 18 October 2022.
Westpac will also increase rates for savers by the full 0.25% across Westpac Life, Spend&Save and eSaver accounts.
Westpac's Spend&Save account for 18-29 year olds will offer a rate of 3.75% p.a. for balances up to $30,000.
Westpac Chief Executive Consumer & Business Banking Chris de Bruin said many customers are looking at their finances to help manage changes to their household budgets.
“The majority of our borrowers remain in good shape with more than two thirds ahead of mortgage repayments, and no material change in customers seeking financial support at this time," Mr de Bruin said.
ANZ
Following the lead of NAB and Westpac, ANZ has responded on Tuesday flagging an increase to rates for variable mortgage holders by 0.25% from 14 October 2022.
ANZ will also increase its savings rate across it's digital-arm ANZ Plus, offering a rate of 3.25% p.a. for balances up to $250,000 from 12 October 2022.
ANZ Group Executive Australia Retail Maile Carnegie noted customers have been impacted differently by the cost of living and rate changes in recent months.
“Customers who may be facing difficulties are strongly encouraged to reach out to us as soon as they can so we can discuss personalised options to support them through this time,” Ms Carnegie said.
CommBank
Australia's largest bank was the last of the big-four to make a move on Tuesday following the RBA's October cash rate decision, increasing rates for variable mortgage holders by 0.25% from 14 October 2022.
CommBank has also come to the party this month for savers, increasing savings rates across a number of products including its 12-month term deposit by 1.35% to 3.35% p.a. and 18-month term deposit special to 3.70% p.a.
CommBank Group Executive of Retail Banking Angus Sullivan said the bank is committed to helping customers navigate the current environment, including through further increases to the interest rates across a number of our deposit products.
“We are seeing more and more customers taking advantage of the tools available to manage their finances in the face of rising living costs," Mr Sullivan said.
"Customers are also aligning timing of their mortgage payments with when their salary is paid, helping them to better budget their money.”
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
