Major banks shock double rate hikes ahead of RBA

RBA Governor Michele Bullock is now under massive pressure to hike the cash rate target. Picture: NewsWire / Martin Ollman Two of Australia’s biggest banks have slapped on a double rate hike within days of each other as fears over escalating mortgage costs rampage across the country ahead of RBA’s expected increase. Commonwealth Bank put in the biggest individual hike this month following the footsteps of Westpac just days before, placing even more pressure on the Reserve Bank to act as inflation – with ANZ also projecting rates will hit GFC-era highs before Christmas. Cash rate forecasts. Source: RBA Canstar.com.au data insights director, Sally Tindall, said “Australia’s biggest bank has delivered a hefty blow to its fixed rates, jacking up its 2-year loan by 0.48 percentage points – nearly twice the size of a standard cash rate hike”. “A 0.48 percentage point increase isn’t a tweak, it’s a clear signal Australia’s biggest bank is bracing for higher borrowing costs ahead.” CBA head of Australian economics Belinda Allen said “inflation remains too high and households are having to devote a larger share of wallet to fuel … The path of the oil price from here given already too high i...