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NAB and Westpac Lead Swift Response to Latest Interest Rate Hike Amid Big Bank Adjustments

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Just hours after the decision was announced by RBA Governor Michelle Bullock, National Australia Bank (NAB) told its customers it would be passing on the increase.

NAB Group Executive Ana Marinkovic acknowledged the additional strain that households would face following February’s interest rate hike amidst rising inflation and fuel costs.

Debit cards from the big four banks - Commonwealth Bank, NAB, Westpac, ANZ
NAB and Westpac have already passed on the rate rise to their customers, with ANZ and Commonwealth Bank expected to follow. (Dominic Lorrimer)

“We understand that another rate increase will present challenges for many Australians, especially given the persistent cost-of-living pressures,” Marinkovic stated.

She noted that while many customers had prepared for this by establishing a financial buffer, she admitted, “that won’t be the case for everyone.”

Westpac’s Chief Executive for Consumer Banking, Carolyn McCann, commented, “With global conflicts affecting inflation and living expenses, we recognize these are uncertain times for many of our customers.”

Westpac followed suit, announcing their home loan interest rates would increase by 0.25 per cent, but also increasing the interest rate to their customers with savings accounts – something NAB did not announce.

“We are committed to providing assistance, and we encourage any concerned customers to contact us as soon as possible so we can discuss available support options,” she added.

“We are here to help and if customers are concerned, we urge them to contact us as early as possible so we can talk through the support options available,” she added.

ANZ and Commonwealth Bank are expected to follow suit in passing on the rise to customers.
Michele Bullock, Governor, Reserve Bank of Australia (RBA), said the decision was the only one that could be made to quell rising inflation. (Alex Ellinghausen)

The RBA made the decision for a second straight rate increase in a five to four vote, with Bullock claiming there was “robust discussion” between members.

However, she insisted this was not about making the decision itself, but about whether this was the right time, as she said this was the only decision they could make to cut down on inflation.

“The direction wasn’t the issue,” she said.

“Higher petrol prices will add to inflation, but they’re not the reason for today’s decision… Inflation was already too high.”

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