All major banks pass on interest rate hike in full

All four major banks have now passed the increase in the official cash rate with NAB this morning joining its competitors by increasing home loan rates.

The official cash rate was increased from a record low of 0.1 per cent to 0.35 per cent, the first interest rate hike since November 2010.

That will see those with a mortgage of $500,000 paying an extra $65 per month.


Commonwealth Bank was the first of the big four to move shortly after the announcement, closely followed by Westpac and ANZ.

NAB has now confirmed it will also pass on the full rate hike.

Its standard variable rate will increase to 4.77 per cent from May 13.

The bank will also increase the interest rate on some of its savings products.

The Reserve Bank has warned there will be several more interest rate hikes to come over the next 12 months.

“It’s not unreasonable to expect the normalisation of interest rates over the period could see them rise to 2.5 per cent,” RBA Governor Philip Lowe said.

“How fast we will get there will be determined by events.”