(Reuters) – Australia’s ‘Big Four’ banks will raise their home loan rates by 25 basis points this month, they said on Tuesday, continuing a full quarter-point interest rate hike announced by the central bank a day earlier.
The move coincided with the Reserve Bank of Australia’s seventh hike in as many months, raising its benchmark lending rate by 25 basis points to a nine-year peak of 2.85%, signaling more to come as it revises its inflation forecast upwards.
Commonwealth Bank of Australia, National Australia Bank and Australia and New Zealand Banking Group said the new rates will take effect Nov 11, while Westpac Banking Corp’s rate hike will take effect Nov 15, the lenders said in a separate statement.
Shares of these banks rose on Monday after the rate hike, gaining between 0.9% and 1.6%, with the financial index up 1.3% on the day. On Tuesday, banks and indices closed largely unchanged, with the exception of Westpac which added 0.7%.
(Reporting by Sameer Manekar and Harshita Swaminathan in Bengaluru; Editing by Rashmi Aich)