Tasmanian-based Bank of us will pass on the latest interest rate rise in full to home loan customers with variable rate mortgages.
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Its home, residential-investment and commercial loan variable interest rates will increase by 50 basis points (0.50 percentage points) from September 21.
"Savings and term deposit rates are currently being reviewed and any changes will be advised shortly," the bank said.
"The decision to increase lending rates is based on several factors, including balancing the interests of both our borrowers and depositors and ensuring the bank's financial sustainability.
"Bank of us encourages anyone who might be finding it difficult to manage their loan to call 1300 306 716 to chat about their individual circumstance."
The Reserve Bank has increased the cash rate for five straight months in its fight against rampaging inflation.
That has taken the rate from an emergency low of 0.10 per cent to 2.35 per cent, with more hikes likely in coming months.
"The board expects that further increases in interest rates will be required over the months ahead ... ," Reserve Bank governor Philip Lowe said on September 8.
"We are conscious that there are lags in the operation of monetary policy and that interest rates have increased very quickly.
"And we recognise that, all else equal, the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises."
Economist Saul Eslake has tipped the cash rate to peak with two more hikes of 0.25 percentage points.
The banks have generally passed on the recent increases in full to holders of variable rate mortgages.
The most recent 0.50 percentage point hike to the cash rate was announced on September 7.
Banks to pass that on in full included the big four - the Commonwealth, Westpac, the NAB and ANZ - MyState Bank and Bendigo and Adelaide Bank.
Some banks have also increased some rates for savings accounts and term deposits.
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