Customers brace for pain as sticky inflation leaves RBA out of options
Australia’s largest mortgage lender Commonwealth Bank has updated its home loan interest rates page in response to the Reserve Bank of Australia (RBA)’s decision to increase the cash rate by 25 basis points.
While CBA has yet to reprice its product range, the bank acknowledged that “the RBA has increased the cash rate. This can affect interest rates. We’re currently reviewing ours and will share an update soon”.
CBA noted that the official cash rate is only one factor in determining its funding costs, but it “will review interest rates on all products and make an announcement in due course”.
Borrowers are on edge following the first central bank rate rise in over two years in response to persistent inflationary pressures.
Per analysis from Mortgage and Finance Association of Australia chief executive Anja Pannek, an average household mortgage of $694,000 could be slapped with an extra $109 in monthly repayments, “which will be felt most by borrowers who reduced repayments during the last easing cycle”.
Bendigo Bank also said it is “reviewing our interest rates following the RBA’s change to the cash rate and will keep you updated”, while Australia’s fifth-largest lender Macquarie Bank posted a similar statement.
Stay tuned to MPA for further updates.
