Banks hit weary customers with fresh rate rise following RBA call
Updated . First published at
Australia's big four banks have wasted little time in passing on today's interest rate hike to their customers.
Borrowers already weary from surging inflation – driven primarily but not exclusively by the war in Iran – were dealt another blow this afternoon when the Reserve Bank moved to increase the cash rate target by 25 basis points.
That decision has returned the official cash rate target to the same level of 4.35 per cent it was sitting at last February, before the RBA embarked on its brief easing cycle.
READ MORE: Grim reality of how much RBA rate hike will cost you
Three of the big four have wasted little time in passing on today's interest rate hike to customers. Dominic Lorrimer
Combined with this year's previous two hikes, the three cuts' worth of relief borrowers enjoyed in 2025 has been wiped out in little more than three months.
This evening, Commonwealth Bank announced it would quickly pass on the hike in full to its home and business loan customers.
The changes will come into effect on May 15, in just 10 days' time.
"Our focus is on supporting customers to stay on top of their finances with practical tools, clear guidance and access to help when it's needed," CBA head of retail banking Angus Sullivan said.
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However, there was no mention of any change to interest rates for savings customers.
NAB also announced it would increase home loan rates on May 15. Like CBA, it made no mention of any changes that would benefit its savers, saying only that it "regularly reviews" them.
Later this evening, Westpac became the third of the big four to pass on the RBA's hike before ANZ completed the set.
Like CBA and NAB, ANZ and Westpac said the increase would come into effect on May 15.
AS IT HAPPENED: Reserve Bank gives the news no mortgage-holder wants
Macquarie Bank quickly announced it would pass on the rate hike to both borrowers and savers. Dominic Lorrimer
"We recognise that many Australian households are feeling pressure from the cost of living amid current global uncertainty," ANZ group executive Australia retail Pedro Rodeia said.
Westpac was the only one of the majors to announce customers on two of its savings products would also benefit from the hike.
Macquarie Bank was quicker on the trigger than its larger counterparts, announcing its own rate rises within minutes of the RBA's decision, but also delaying their implementation by an extra week – its customers' rates will rise on May 22.
"To give our customers more time to adjust to the higher interest rate environment, we are once again delaying this increase by more than two weeks," head of personal banking Ben Perham said.
It also announced savings rates would increase by 25 basis points.
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