Commonwealth Bank, Australia's largest bank, has increased its interest rates by 0.25% following the Reserve Bank of Australia's recent rate hike. This makes CommBank the last of the Big Four banks to pass on the RBA's decision. The other three major banks, NAB, Westpac, and ANZ, have already raised their rates. CommBank's variable rate now stands at 6.59%, while Westpac offers 6.34% for two years before increasing by 0.4%. ANZ estimates that the rate increase will result in a $70 monthly repayment increase for a variable home loan of $450,000. Other smaller lenders, including ME Bank, Bank of Queensland, and Virgin Money, have also announced rate increases for their variable mortgage customers. Customers are advised to reach out to their banks for assistance if needed. [4c64d1e7]
The RBA raised the cash rate from 0.1% to 4.1% in June 2023 and recently announced a 25 basis point hike to 4.35%. RBA governor Michelle Bullock stated that inflation in Australia has passed its peak but remains higher than expected. [46716a94]