Debit cards from the big four banks - Commonwealth Bank, NAB, Westpac, ANZ

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Just hours after the decision was announced by RBA Governor Michelle Bullock, the Commonwealth Bank, National Australia Bank, ANZ and Westpac told their customers they would be passing on the increase.

NAB Group Executive Ana Marinkovic acknowledged the strain that the recent rate hike would impose on households already grappling with February’s rate increase, rising inflation, and escalating petrol prices.

Debit cards from the big four banks - Commonwealth Bank, NAB, Westpac, ANZ
NAB and Westpac have already passed on the rate rise to their customers, with ANZ and Commonwealth Bank expected to follow. (Dominic Lorrimer)

“We understand that another rate hike will pose challenges for many Australians, especially given the ongoing cost-of-living pressures,” Marinkovic stated.

She noted that while many customers had anticipated the increase and prepared accordingly, she admitted that “this won’t be the case for everyone.”

Westpac’s Chief Executive for Consumer, Carolyn McCann, highlighted the impact of international conflicts on inflation and living costs, acknowledging the uncertainty faced by many customers.

Westpac followed suit, announcing its home loan interest rates would increase by 0.25 per cent, but also increasing the interest rate to their customers with savings accounts – something NAB did not announce.

“We are committed to supporting our customers, and we encourage those with concerns to contact us as early as possible to explore available support options,” McCann advised.

Angus Sullivan, CBA Group Executive, also recognized the effects of interest rate changes on household budgets, acknowledging their role in influencing financial planning and management.
The Commonwealth Bank said all home loan variable rate changes will be effective on March 27.

“We recognise interest rate changes can put additional pressure on household budgets and influence how people plan and manage their finances,” CBA group executive Angus Sullivan said.

ANZ group executive Australia retail Pedro Rodeia said concerned customers should contact the bank.

“Customers who might be concerned about their repayments are encouraged to get in touch with us early. Our team is ready to provide support, guidance and access to a range of tools to help customers manage their finances,” he said.

Michele Bullock, Governor, Reserve Bank of Australia (RBA), said the decision was the only one that could be made to quell rising inflation. (Alex Ellinghausen)

The RBA made the decision for a second straight rate increase in a 5-4 vote. Bullock said there was “robust discussion” between members.

However, she insisted this was not about making the decision itself, but about whether this was the right time, as she said this was the only decision they could make to cut down on inflation.

“The direction wasn’t the issue,” she said.

“Higher petrol prices will add to inflation, but they’re not the reason for today’s decision … Inflation was already too high.”

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