Australia's Major Banks Raise Home Loan Rates Following RBA Rate Hike

Australia's major banks will lift variable home loan rates by 0.25 per cent from next month, after the Reserve Bank of Australia (RBA) lifted the cash rate to its highest level in more than a decade.

This week's RBA decision took the country's cash rate to 4.6 per cent, an increase of 0.25 per cent, and the fourth hike this year.

The cash rate is the highest it has been since November 2011.

Commonwealth Bank, NAB, Westpac and ANZ announced increases to home loan variable interest rates by 0.25 per cent per annum, effective October 9.

CBA's group executive retail banking, Angus Sullivan, said the RBA's decision came during persistent inflation and ongoing global uncertainty, which were adding to economic pressures.

Most banks acknowledged many mortgage holders may struggle with the increased payments.

NAB group executive personal banking, Ana Marinkovic, said concerned customers should contact the bank early about their finances.

Westpac chief executive, consumer, Carolyn McCann, acknowledged the increase would impact households' cost-of-living pressures.

ANZ said it was reviewing its other interest rates.

Macquarie Bank also announced it would make changes to interest rates across its variable home loan and deposit products from October 15.

Its variable interest rates on transaction and savings accounts will increase by 0.25 per cent per annum, along with its variable home loan reference rates.