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Australian lenders NAB and ANZ to hike home loan rates by 50 basis points

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Adds interest rate hike details, context

September 9 (Reuters)Australian and New Zealand banking group ANZ.AX joined National Bank of Australia NAB.AX by raising its variable interest rates on home loans on Friday, fully passing on the central bank’s 50 basis point (bp) rate hike to its customers.

Westpac Banking Corp. WBC.AX and the country’s largest lender, the Commonwealth Bank of Australia ABC.AX are also likely to raise their mortgage rates, after the Reserve Bank of Australia (RBA) raised its cash rate for the fifth time since May to a seven-year high of 2.35%.

New tariffs for ANZ and NAB customers will come into effect on September 16, they said.

Both lenders added that savings account rates remain under review.

So far, Australian lenders have followed the RBA in passing on the full rate hike to their clients, expecting to reap the benefits at a time when the country’s property market shows signs of cooling.

House prices in the country suffered their biggest drop in 40 years in August as rising interest rates and cost-of-living pressures ripped a hole in demand, threatening to undermine the household wealth and confidence.

(Reporting by Harish Sridharan; Additional reporting by Jaskiran Singh; Editing by Subhranshu Sahu and Rashmi Aich)

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