First major bank hikes interest rates

Lender passes increase on in full to customers

First major bank hikes interest rates


By Jayden Fennell

Less than two hours after the Reserve Bank lifted the official cash rate 25 basis points, NAB was the first major bank to announce it was passing on the rate hike in full.

NAB’s standard variable home loan interest rate will increase by 0.25bp effective October 14 2022.

The bank said its savings and term deposit rates are continually under review and in September, the bank increased a number of its saving rates by 0.50bp and Term Deposit rates by up to 0.85%.

NAB group executive for personal banking Rachel Slade said NAB was focused on supporting its customers.

“If you are worried about the impact of increasing interest rates, you have our full support,” Slade said.

“Our home loan specialists can help with a financial health check to make sure you’re on the best rate for your situation and our NAB Assist team is on standby for those who need additional help. The best first step is a conversation with us so we can find the best way to look after you – the earlier the better.”

On Tuesday, the Reserve Bank of Australia lifted the official cash rate for the sixth consecutive month, as it perseveres with fighting inflation.

In an unexpected move by many economists, the RBA board decided to increase the official cash rate by 25-basis points from 2.35% to 2.60% and the interest rate on exchange settlement balances to 2.50%.

This was the sixth rate increase in 2022 – but only the second 25-basis point rise. The RBA has consistently pushed up the wholesale cash rate from a record low 0.10%, to sit at 2.60% following its October 4 board meeting.

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