Al-anwar Newspaper English news in Australia
Christmas is officially ruined for many people after the Reserve Bank of Australia raised interest rates for the eighth consecutive time.
The RBA announced on Tuesday that it was hiking the cash rate by 25 basis points, bringing it to 3.1 per cent — the highest level since 2012.
The big banks have begun to announce they will pass on the RBA’s rate rise to its variable rate customers.
NAB was the first of the big four banks to pass on the rate hike, with variable mortgage holders to cop the full 0.25 per cent rise.
From December 16, NAB will see its discounted variable rate reach 6.67 per cent, representing a $78 increase in monthly repayments for a $500,000 loan.
Westpac and ANZ have also passed on the rate rise for variable owner-occupier customers.
ANZ will see its discounted variable rate hit 5.99 per cent and its index rate jump to 7.39 per cent from December 16.
NAB customers can expect to pay $72-81 more each month if they took out a $500,000 loan.
Westpac will now see its standard variable rate hit 6.18 per cent and its standard rate reach 7.48 per cent from December 20.
Commonwealth Bank (CBA) has also announced it will be passing on the rate hike, effective December 16.
It’s basic rate will now sit at 4.87 per cent and it’s discounted variable rate will now be between 4.82 and 6.49 per cent.
CBA’s standard variable rate will now be 7.55 per cent.
Athena Home Loans will also be increasing its rates “in line” with the RBA’s announcement, the bank said on Tuesday.
The hike will add about $80 to the monthly payment on a $500,000 mortgage.
That would take the total increase in monthly payments since April to $910 per month or $11,000 for the year.
“To comfortably afford this, you’d need to be earning a minimum income of just over $180,000 – significantly more than the average salary,” Graham Cooke, head of consumer research at Finder, said.
Governor Philip Lowe said the “substantial cumulative increase” in interest rates since May had been necessary to ensure the current period of high inflation was only temporary.
“High inflation damages our economy and makes life more difficult for people,” he said.
“The board’s priority is to re-establish low inflation and return inflation to the two to three per cent range over time.
“The board recognises that monetary policy operates with a lag and that the full effect of the increase in interest rates is yet to be felt in mortgage payments.”
Dr Lowe said the board expected to increase interest rates further.
“It is closely monitoring the global economy, household spending and wage and price-setting behaviour,” he said. “The size and timing of future interest rate increases will continue to be determined by the incoming data and the board’s assessment of the outlook for inflation and the labour market.” n some good news, there will be relief for Australians in the New Year because the RBA board will not meet in January.
