{"id":109400,"date":"2026-02-26T07:29:00","date_gmt":"2026-02-25T20:29:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=109400"},"modified":"2026-02-25T20:46:35","modified_gmt":"2026-02-25T09:46:35","slug":"interest-rates-hike-again","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/interest-rates-hike-again\/","title":{"rendered":"Interest Rates Hike Again: Commonwealth Bank, Westpac React to Rising Inflation"},"content":{"rendered":"\n

If you\u2019re one of the millions of Australians keeping a close eye on interest rates, then brace yourselves\u2014the hikes just keep coming. This week, Commonwealth Bank and Westpac raised their fixed home loan interest rates, and the RBA\u2019s future moves might be more of the same. It\u2019s not just the banks that are reacting\u2014many Aussies are feeling the squeeze. So what\u2019s the deal? Let\u2019s unpack the reasons behind the increases and what they mean for everyday Australians.<\/p>\n\n\n\n

A Sneaky but Steady Trend<\/h2>\n\n\n\n

In the world of home loans, when big players like Commonwealth Bank and Westpac raise their rates, it\u2019s a signal. This isn\u2019t just a minor uptick\u2014these are significant hikes, and they come with a hefty price tag. For example, Commonwealth Bank raised all of its fixed-rate terms by 0.25 percentage points, marking the second time in just six weeks. Meanwhile, Westpac’s increase ranged up to 0.30 percentage points. If you\u2019re one of those paying off a mortgage, these hikes will add about $90 to your monthly repayments for a typical $600,000 loan. It\u2019s not pocket change, right?<\/p>\n\n\n\n

So, what\u2019s behind this steady climb? In a nutshell, inflation. The Reserve Bank of Australia (RBA)<\/a> had already hiked the cash rate to 3.85%, and now with inflation staying stubbornly high at 3.8% annually, both the RBA and the banks are bracing for more. The pressure from rising costs on everything\u2014groceries, energy, rent\u2014is being passed down, and it\u2019s making mortgages a little more expensive for all of us.<\/p>\n\n\n\n

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Facade of an RBA building<\/figcaption><\/figure>\n\n\n\n

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The Hot Topic: Fixed Rates and Their Climb<\/h2>\n\n\n\n

The RBA\u2019s action isn\u2019t just something that happens in a vacuum. Banks like Commonwealth and Westpac adjust their rates based on a mix of factors, with inflation being a primary one. But what\u2019s really interesting is that fixed rates are climbing faster than variable ones. These hikes on fixed rates could be a way for banks to cover increasing costs as they get squeezed by inflation and market conditions. And while these moves might seem like a tough pill to swallow, experts say that there\u2019s still more to come, explains Yahoo Finance.<\/a><\/p>\n\n\n\n

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Commonwealth Bank, Westpac raises interest rates as hot inflation figures increase chance of another RBA hike – Yahoo Finance Australia https:\/\/t.co\/1m5fyetoat<\/a><\/p>— Jason Birch (@JasonBirch0916) February 25, 2026<\/a><\/blockquote>