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Commonwealth Bank is the first of the Big Four to pass on the rate hike

Commonwealth Bank has led the way in fully passing on the Reserve Bank’s latest rate hike to customers.

The CBA said it would bring the default variable interest rate for owner-occupiers paying principal and interest to 5.8 percent from July 15.

The equivalent home loan rate to investors will also rise 50 basis points to 6.38 percent.

The bank also said it would pass the full rate hike on to its bonus interest accounts GoalSaver and Youthsaver and introduce a time deposit of 2.5 percent for 15 months.

None of the other major banks had announced a move as of 10:30 a.m. AEST.

A few days before Tuesday’s rate decision, Commonwealth Bank had raised its fixed mortgage rate by 1.4 percent

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RBA raises interest rate by half a percentage point to 1.35%

The RBA Has Raised Official Cash Interest Rates by half a percentage point to 1.35 percent on Tuesday, the highest since May 2019.

When lenders pass the 0.5 percentage point increase, the average owner-occupier with a $500,000 loan and 25 years left will see their repayments increase by $137, according to RateCity.

If we add up the May, June and July increases, the total increase in monthly repayments comes to $333.

‘Extraordinary support is no longer necessary’

The central bank has raised the spot interest rate for three consecutive months to quell rising inflation.

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