Tuesday's monetary policy decision was largely unexpected, with many economists forecasting a hold.

NAB was the first mover in the previous two rate increases, but waited a few days for the dust to settle.

However, banks wasted no time this time around in making rate announcements.


Just as everyone was packing up to go home at about 5.15pm, Westpac announced it would increase its variable-rate home loans.

The rate increase is 25 basis points and applies to both new and existing customers. 

This rate increase is effective 20 June.

“We understand interest rate increases put more pressure on household budgets. The majority of our customers are managing okay, but we know with each rate change it’s getting more challenging,” said Chris de Bruin, Westpac Chief Executive Consumer and Business Banking.

Westpac said its savings rates are under review, but announced it would offer a 12-month term deposit of 4.50% p.a. from 9 June.

In term deposit land, this is competitive among the major banks, but slightly behind the eight-ball in terms of market leaders.


Popular NAB-owned subsidiary UBank boosted its savings account rate by the full 25 basis points.

In usual fashion for the digital bank, it was the first to announce.

However, savers won't actually see effective until 1 July. 

The rate increase brings the popular savings account to a total of 5.00% p.a. 

This consists of a 0.10% base rate and 4.90% p.a. bonus rate.

To get the bonus savers must have a linked UBank spending account, and deposit $200 per month excluding internal transfers into either the Spend or Save account.