People use Commonwealth Bank of Australia (CBA) bank ATMs in Sydney, Australia May 3, 2018. REUTERS/Edgar Su/File Photo
Commonwealth Bank of Australia (CBA.AX), the country’s largest lender, on Thursday joined the other three big banks in raising its standard variable home loan rate by 25 basis points after the central bank hiked its interest rate earlier this week.
The National Australia Bank (NAB.AX), ANZ Group Holdings (ANZ.AX) and Westpac Banking Corp (WBC.AX), the other three of Australia’s “big four”, had hiked their home loan rates on Wednesday by 0.25%.
On Tuesday, the Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, ending four months of steady policy, saying that recent data suggested there was a risk of inflation remaining higher for longer.
The rate hike by the National Australia Bank (NAB.AX) and ANZ Group Holdings (ANZ.AX) would be effective from Nov. 17, while Westpac Banking Corp (WBC.AX) would raise rates from Nov. 21, the lenders said in separate statements on Wednesday.
CBA said its home loan variable rate change would be effective from Nov. 17.
Reporting by Rishav Chatterjee and Upasana Singh in Bengaluru; Editing by Savio D’Souza and Rashmi Aich
