The RBA has delivered yet another blow to homeowners, handing down a 25 basis point increase to the cash rate in June, taking it to 4.10%.
While some economists believe the closing credits to the RBA’s relentless rate hikes are coming to an end, others aren’t as convinced.
ANZ Economist Adam Boyton said the major bank no longer sees a terminal cash rate of 4.10% as sufficient enough to bring inflation back to target in a reasonable time frame.
“We are moving our expectation of the ‘terminal’ cash rate to 4.35%,” Mr Boyton said.
"We consider August the most likely month for a move from the RBA, driven by the quarterly forecast update cycle and uncomfortable timing around the return of inflation to the target.
“Ahead of that we expect an increase in either June or July (calling the month is a line ball decision in our view).”
AMP Senior Economist Shane Oliver said a variable rate borrower with a $600,000 mortgage will see roughly another $100 added to their monthly mortgage payment from today’s RBA hike.
“This would take the total increase since April last year to an extra $1,310 a month or $15,720 a year,” Dr Oliver said.
“Even if a borrower has secured a 0.50% cut to their mortgage rate their payment would be up an extra $13,320 a year since April last year.”
This page will detail reactions across the big-four banks following the RBA's June cash rate hike - check back here regularly for the latest information.
See how the banks reacted following May’s announcement.
CBA
Three days following the RBA's June decision, CommBank has announced its intent to pass on the 25 basis point increase in full to variable rate home loans and savings accounts.
CommBank's increase to both home loan and savings rates will take effect from 16 June 2023.
CommBank Group Executive Retail Banking Angus Sullivan said the increases made today across the bank's core savings products provide terrific opportunities for savers to make their money work harder.
"To help customers save, we have increased rates on our savings products, some by more than the RBA cash rate change. For example since May 2022 we have increased the GoalSaver with bonus rate from 0.25% pa to 4.65% p.a., effective 16 June 2023," Mr Sullivan said.
“Our savings products have different features and serve different purposes, so we encourage customers to speak to us if they need help to choose which product may be most suitable for them."
Mr Sullivan also noted the bank has decided to make changes to its fixed-rate home loans including reductions to its four year and five year rates by as much as 0.40% p.a.
ANZ
Following in quick succession from CBA, ANZ has announced its intent to pass on the cash rate increase in full to both variable rate home loans and some savings customers.
For variable rate mortgagees, the increase will take place from 16 June 2023.
ANZ will now offer a new 12-month Advance Notice term deposit rate of 4.60% p.a., effective 9 June 2023.ANZ continues to review other deposit rates.
ANZ Group Executive Australia Retail Maile Carnegie said the bank understands rate changes affect customers differently.
"We have several tools available to help our customers understand and manage their home loans, including our home loan repayment calculator, which enables customers to see how this change will affect their repayments," Ms Carnegie said.
"There are multiple ways customers can connect with us, including making an appointment at a branch or contacting us by phone. We are here to help."
NAB
Lucky last NAB has announced its intent to pass on the cash rate increase in full to both variable rate home loans and some savings customers.
Increases to both NAB variable rate home loans and savings accounts will take effect from 16 June 2023.
NAB Group Executive Personal Banking Rachel Slade said the bank was proactively contacting customers who might need additional support.
"Each rate increase since May last year has been incrementally challenging for Australian households," Ms Slade said.
"We know from speaking with our customers that most are in good shape, however there are some who need our additional support.
“We’re proactively reaching out to our customers to offer help and have a range of options available to assist them through the rising cost of living."
Westpac
Westpac was the first to fire the shot late in the day on 6 June, with variable interest rates for new and existing home loan customers increasing by 25 basis points, effective 20 June.
Westpac Chief Executive Consumer and Business Banking Chris de Bruin said the bank understands the pressure interest rate rises put on household budgets.
"The majority of our customers are managing okay, but we know with each rate change it's getting more challenging," Mr de Bruin said.
"We're reaching out to some customers who may need additional support and have competitive interest rates available for those rolling off fixed loans to make the change easier.
"For customers in financial difficulty we are here to help and encourage them to call us early if they're concerned."
Westpac said its savings rates are 'under review.'
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First published on June 2023
Image by CBA, ANZ, NAB & Westpac
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