The Reserve Bank of Australia (RBA)'s decision to increase the cash rate by 0.25 per cent is set to be quickly passed on to mortgage holders.
Just hours after the decision was announced by RBA Governor Michelle Bullock, National Australia Bank (NAB) told its customers it would be passing on the increase.
NAB Group Executive Ana Marinkovic said the bank recognised the added pressure it would add to households who were coming to terms with February's rate rise and were battling higher inflation and petrol prices.
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"We know another rate increase will be challenging for many Australians, particularly in the context of ongoing cost-of-living pressures," she said.
She said many customers had anticipated this and built a safety net, she conceded "that won't be the case for everyone."
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Westpac followed suit, announcing their home loan interest rates would increase by 0.25 per cent, but also increasing the interest rate to their customers with savings accounts – something NAB did not announce.
"With overseas conflict impacting inflation and cost of living, we know these are uncertain times for many of our customers," Westpac Chief Executive Consumer Carolyn McCann said.
"We are here to help and if customers are concerned, we urge them to contact us as early as possible so we can talk through the support options available," she added.
ANZ and Commonwealth Bank are expected to follow suit in passing on the rise to customers.
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The RBA made the decision for a second straight rate increase in a five to four vote, with Bullock claiming there was "robust discussion" between members.
However, she insisted this was not about making the decision itself, but about whether this was the right time, as she said this was the only decision they could make to cut down on inflation.
"The direction wasn't the issue," she said.
"Higher petrol prices will add to inflation, but they're not the reason for today's decision… Inflation was already too high."
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