Interest rate pain as big four banks rush to pass on latest hike

Tim McIntyre

Updated 18 Mar 2026, 10:17am

First published 18 Mar 2026, 9:24am

RBA Governor Michele Bullock announced a cash rate rise. Picture: Gaye Gerard

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ANALYSIS

And they’re off and racing! Or is that raising? The big four banks wasted no time passing on the second straight rate hike in full to their customers on Tuesday afternoon, issuing press releases while the RBA roadies were still packing up the sound system after Governor Michele Bullock’s rate announcement and subsequent press conference.

First out of the blocks was NAB, announcing the rate hike would be passed on in full and effective within 10 days.

NAB’s group executive of personal banking Ana Marinkovic said she knew another rate increase “will be challenging for many Australians” and encouraged customers feeling the pressure to reach out “as soon as possible. There are options available and our bankers are here to help”.

OUR FAULT:Why we’re to blame for the rate hike

CBA followed suit with a 0.25 per cent increase of its own and another sympathetic message about “additional pressure on household budgets” and noting the bank was “committed to making support simple and accessible”.

Ana Marinkovic said NAB’s bankers were “here to help”. Picture: Jake Nowakowski

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If only that support involved not having to pay higher interest rates!

ANZ and Westpac were next to announce hikes with three of the big four’s new rates taking effect on 27 March and only Westpac’s to be effective later, on 31 March.

Westpac will now have the cheapest variable rate of the big four at 5.74 per cent, followed by CBA at 5.84 per cent.

ANZ (6.00 per cent) and NAB (6.19 per cent) are no longer in the ‘fives’.

Not wanting to be outdone by the recognised banks, Teachers Mutual sent their own press release announcing a passing on of the full increase, while Bankwest hit its customers with emails notifying them of the same, shortly after close of business on Tuesday.

Finder head of consumer research Graham Cooke said the rate hike was a “psychological blow”.

FULL LIST:25 banks yet to pass on February rate hike

“One more hike and we’re back to the highest rate since 2011. This is an annual increase of over $1400 for the average borrower,” he said. “

“Finder research shows that the gap between the average rate in the market and the lowest tends to be around 25bp – so you could remove this cut by refinancing.

“All eyes will now settle on the Strait of Hormuz – which will remain vulnerable to obstruction no matter who decides they can declare an end to the war. To avoid another hike next month, the oil will need to flow.”

Canstar’s Sally Tindall said bank support is a “lifeline, not a lifestyle”. Picture: Supplied.

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Canstar data insights director Sally Tindall said bank customers feeling the pressure should contact the banks, but be careful about how they use support options.

“If you’re starting to feel the strain, the worst thing you can do is stay silent. Banks have a legal obligation to help, but you need to reach out early,” Ms Tindall said.

“Switching to interest-only or extending your loan term can offer short-term relief, but they come at a long-term cost. What eases your budget now may add thousands in interest later.

“These options should be treated as a lifeline, not a lifestyle – they’re there to help you through a rough patch, not as a permanent solution.”