(Reuters) - Australia's 'Big Four' banks will raise their home loan rates by 25 basis points this month, they said on Tuesday, passing on the full quarter-point interest rate hike announced by the central bank a day earlier.
The move is in sync with the Reserve Bank of Australia's hike, seventh in as many months, raising the benchmark lending rate by 25 basis points to a nine-year peak of 2.85%, signalling more to come as it revised its inflation forecast upwards.
Commonwealth Bank of Australia (OTC:CMWAY), National Australia Bank (OTC:NABZY) and Australia and New Zealand Banking Group said the new rates will be effective Nov. 11, while Westpac Banking (NYSE:WBK) Corp's rate hike will be effective Nov. 15, the lenders said in separate statements.
These banks' shares rose on Monday after the rate hike, gaining between 0.9% and 1.6%, with the financials index advancing 1.3% on the day. On Tuesday, banks and the index ended largely unchanged, except Westpac that added 0.7%.