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Westpac The First To Pass On Interest Rate 

Westpac has become the first of the “big four” to pass on the Reserve Bank’s latest interest rate, hiking up by 25 basis points. 

It is the 12th time the bank has hiked rates since May 2022, marking the highest cash rate for the past 11 years. 

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On Tuesday this week, Westpac said it considered “a range of factors when reviewing interest rates, balancing the needs of both borrowers and savers”. 

Chris de Bruin, Westpac Chief Executive of Consumer and Business Banking, said:

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,”

Mr de Bruin said. 

For average, borrowers with a $500,000 home loan may now experience a monthly increase of $1,134, or a substantial 49 per cent more in their mortgage payments. 

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He said the decision was made after re-considering factors including the cash rate, returns and market environment.

We’re reaching out to some customers who may need additional support and have competitive rates available for those rolling off fixed loans to make the change easier,”

he said.

For customers in financial difficulty, we are here to help and encourage them to call us early if they’re concerned.”

The company also said its new home loan rate will be effective from June 20.

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