Macquarie Bank became the first major bank to announce it would pass on the RBA's rate increase in full, lifting variable home loan reference rates and variable rates on transaction and savings accounts, the bank said. The increases take effect from 19 November 2026.
The rise follows the RBA's decision to lift Australia's official cash rate by 25 basis points to 4.85%, the highest level since November 2008. It was the fifth increase in 2026, following hikes in February, March, May and September. The decision was not unanimous, with a minority of three board members favouring holding the rate at 4.6%.
Ben Perham, Macquarie's head of personal banking, said the bank is delaying the rate rise by more than two weeks so variable home loan customers have time to prepare, and that savings and transaction account customers will also receive the full increase with no complex conditions attached. Macquarie's savings account has no fees and no monthly conditions, including minimum deposit requirements or withdrawal restrictions, that customers must meet to earn the ongoing variable rate.
The RBA revised its inflation outlook materially higher, attributing the change partly to fuel and other commodity prices linked to the Middle East conflict and partly to domestic capacity pressures assessed as somewhat tighter than previously thought. Treasurer Jim Chalmers said in a statement that the Middle East conflict had now entered its ninth month and its renewed escalation was sustaining upward pressure on inflation while also weighing on global growth. The RBA's August forecasts had assumed a global oil price of around $81 a barrel; instead prices had been above $110 in recent weeks, according to the Treasurer.
Macquarie transaction and savings account holders will receive higher variable interest rates from 19 November, with no additional monthly conditions required to earn those rates. Perham urged any customer facing financial hardship or concerned about meeting home loan repayments to contact the bank's specialist team to explore what financial assistance options may be available.
Official statements: Macquarie, Treasury
Reporting: Yahoo Finance, 7NEWS
Background: The Motley Fool Australia, The Conversation
Written by Pick & Scroll News from the reporting and documents linked above.
