CANBERRA: Australia’s Westpac Banking Corp and National Australia Bank will raise home loan rates by 0.25% per annum, the lenders said on Tuesday, shortly after the country’s central bank hiked its benchmark rate by 25 basis points.
Australian banks have so far mirrored the Reserve Bank of Australia (RBA) in their rate hike cycle, with similar action expected from other lenders Commonwealth Bank of Australia and Australia and New Zealand Banking Group.
The RBA’s hike, which was lower than the 50 basis point projected by a Reuters poll, lifted banking shares. The financial index closed 4.2% higher, marking their best day since June 2020.
NAB’s new interest rate will be effective Oct. 14, while Westpac’s will be effective Oct. 18.
Westpac also said the rate on some of its deposits will rise by 0.25% per annum, while NAB said its savings and term deposit rates were “continually under review”.