After the Reserve Bank of Australia announced a rate hike, ANZ and NAB followed suit. (Composite image of The Epoch Times)
[The Epoch Times, February 08, 2023](The Epoch Times reporter Xia Chujun compiled a report in Sydney, Australia) After the Reserve Bank of Australia announced an interest rate hike, two of the four major banks have revealed that their customers will be affected.
On February 7, the Reserve Bank of Australia held its first meeting in 2023. The RBA said global inflation remained high and decided to raise interest rates by 0.25%, bringing the cash rate to 3.35%. This is the ninth consecutive rate hike by the Reserve Bank of Australia since it raised rates in May last year.
ANZ and NAB were the first major banks to announce their response to the rate hike.
NAB said its home loan variable rate would rise by 25 basis points from February 17.
According to news from the Australian News Network, Rachel Slade (Rachel Slade), group executive of personal banking business of National Bank, said, “We agree with the RBA’s action to curb inflation by raising the cash rate, but also understand that some Australians will find it harmful. challenge.”
“I encourage anyone who is concerned about their financial situation to seek help from their bank.”
She said NAB had a dedicated team that listened to each customer’s individual circumstances and was able to provide a tailored solution, whether the customer was reducing payment arrangements, interrupting payments or restructuring their loan.
“When clients engage with NAB at the early stages of focusing on their financial situation, we are able to get over 95 per cent of our clients back on their feet financially within three months,” she said.
ANZ Bank announced that its home loan variable rate will be increased by 25 basis points, effective February 17.
At the same time, ANZ will also increase the interest rate for savings customers with balances below $250,000 in its Plus Save account by 25 basis points, effective February 14.
“At a time of rising costs of living and changing interest rates, some customers will feel more financial pressure,” said Maile Carnegie, chief executive of Australian retail at ANZ Banking Group.
“We urge anyone facing hardship to speak to our team of experts at the earliest opportunity to discuss the options available to support their specific situation.”
Analysis by comparison website Canstar found that for the average Australian with a $500,000 mortgage, their monthly repayments would increase by $969 a month, or $11,628 a year, if the bank passed on the rate hike.
For a homeowner with a $1 million home loan, they will spend an extra $1,939 a month and $23,268 over the next 12 months.
Both ANZ and Westpac have forecast the cash rate will peak at 3.85 per cent in May. The two banks expect two more rate hikes after their February meeting.
NAB has a better forecast for struggling homeowners, predicting homeowners will only have to live with two more months of rising interest rates.
Economists at the bank say rates will peak at 3.6% by March.
The most optimistic forecast from the Commonwealth Bank (CBA) sees a pause in rate hikes as the Reserve Bank reassesses and awaits more reports on inflation.
Deutsche Bank, on the other hand, predicts that rates will not start falling until the cash rate hits 4.1%.
Deutsche Bank chief economist Phil O’Donaghoe also forecast the RBA will raise interest rates four times this year, in February, March, May and August.
Editor in charge: Zong Minqing
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