MyState Bank, Bank of us to make interest rates calls with borrowers, savers in mind

The Reserve Bank announced a fourth consecutive hike of the cash rate on Tuesday, by 0.50 percentage points to 1.85 per cent.

The banks have tended to pass on the recent increases in full, with some also pushing up interest rates on some savings products.

Savers were crunched when the Reserve Bank slashed the cash rate to an emergency low level and kept it there for an extended period in a bid to help the economy through the coronavirus pandemic.

MyState Limited managing director and chief executive Brett Morgan on Wednesday said MyState Bank was reviewing its lending and deposit interest rates.

"We'll announce changes to interest rates as soon as a decision is made," Mr Morgan said.

Bank of us chief executive Paul Ranson said the bank would review its rates on Friday.

"When making our decision, we will aim to balance both the interests of our borrower and deposit customers, plus our need to remain financially sustainable," Mr Ranson said.

It is unclear what the run of interest rate increases will mean for employment.

The Australian Bureau of Statistics estimated the Tasmanian unemployment rate was a relatively low 4.3 per cent seasonally adjusted in June, down from 4.5 per cent in the previous month.

The national rate fell from 3.9 per cent to 3.5 per cent, its lowest in 48 years.

The Reserve Bank is forecasting it will climb to about 4 per cent by the end of 2024.

"Job vacancies and job ads are both at very high levels and a further decline in unemployment is expected over the months ahead," Reserve Bank governor Philip Lowe said.

"Beyond that, some increase in unemployment is expected as economic growth slows."

The ANZ said its Australian Job Ads series showed a 1.1 per cent decrease for July.

"We may have passed the peak in job ads, but the large volume of unfilled demand means the labour market will likely continue to tighten," the bank said on Monday.

"We now expect the unemployment rate to fall below 3 per cent by early 2023."