The Commonwealth Bank of Australia will increase mortgage interest rates by 0.5 percentage points, passing on the Reserve Bank’s latest official rate rise to customers in full.
CBA was the first of the major banks to pass on the RBA’s July rate rise in full.The cash rate is now 1.35 per cent, up 0.5 percentage points from June.The Commonwealth Bank of Australia and ANZ will increase mortgage interest rates by 0.5 percentage points, passing on the Reserve Bank’s latest official rate rise to customers in full.CBA was once among Australia’s largest providers of financial advice.The RBA has now lifted the cash rate by 1.25 percentage points in three months.
Sullivan said the changing rate environment could raise questions for customers and the bank encouraged them to connect with a home lending specialist if they needed help.ANZ followed several hours later, announcing it will also increase variable interest rates across its home loans by 0.5 per cent from July 15. The change will increase monthly repayments by $119 on an average home loan of $450,000 for an owner-occupier paying principal and interest.
“There’s more pain on the way for variable home loan customers with another double hike tipped for next month. If this happens, it will be the sharpest rise to the cash rate since 1994, when the RBA hiked by 2.75 percentage points in the space of five months.”strong enough to withstand a second consecutive 0.5 percentage point increaseHe said he had spoken to the heads of Australian banks about passing on the interest rates to savers who have faced record-low returns for several years.
Analysts and economists on Wednesday predicted the Reserve Bank board will raise the official cash rate by 0.5 per cent again in August, before more modest increases of 0.25 per cent in the months following.
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