Feb 3 (Reuters) – Australia’s top four banks increased their home loan variable interest rates on Tuesday after the central bank hiked its cash rates for the first time in two years.
The private banks increased their rates by 25 basis points, mirroring the Reserve Bank of Australia’s move earlier in the day.
Commonwealth Bank of Australia and Westpac said the new home loan variable rate changes would come into effect from February 13 and 17, respectively. National Australia Bank’s hike to its standard variable home loan interest rate and ANZ Group’s hike to its Australian home loans will both take effect from February 13 as well.
Wrapping up the February policy meeting, the RBA raised interest rates to 3.85% in a unanimous decision.
It added that the economy was growing faster than expected and inflation was likely to remain above target for some time.
CBA also increased rates by 0.25% per annum on eligible variable-rate business lending products in a separate announcement, while ANZ added in its statement that it “continues to review other interest rates”.
(Reporting by Roshan Thomas and Shivangi Lahiri in Bengaluru; Editing by Harikrishnan Nair)
