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The central bank lifted the cash rate by 25 basis points to 4.1 per cent on 17 March, marking its second consecutive hike and reinforcing expectations that the rate cycle may have shifted back toward tightening.
While the move was widely anticipated, it signals a changing landscape for brokers, particularly as lenders respond at different speeds and further rate increases remain on the table.
Big 4 move in step – but not in sync
All four major banks have confirmed they will pass on the full 0.25 per cent increase, but their timelines vary.
Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Australia New Zealand Banking Group (ANZ) will implement changes on 27 March. Westpac will follow slightly later on 31 March.
This places the majors within a 10–14 day window from the RBA’s decision, with an average of 11 days.
That time frame is consistent with previous cycles. Following the 3 February rate hike, the big four also took an average of 11 days to pass on increases. Similarly, during the August 2025 rate cut, the majors averaged 11.75 days to adjust their pricing.
Lowest available variable rates among the big four banks are as follows:
- CBA: 5.84 per cent
- Westpac: 5.74 per cent
- NAB: 6.19 per cent
- ANZ: 6 per cent.
Divergence among non-majors
Outside the big four, lender behaviour is less uniform.
AMP has moved more quickly this cycle, confirming it will pass on the latest increase within six days – a shift from the 13 days it took to implement the August 2025 rate cut.
Macquarie Bank, however, has taken the opposite approach. After moving rapidly during the last easing cycle – cutting rates just three days after the August decision – it is now delaying implementation of the latest hike by 17 days, as it did at the previous rate hike on 3 February.
Ben Perham, head of personal banking at Macquarie, said: “We know the RBA’s decision to lift rates again will come as unwelcome news to many mortgage holders, but we want our customers to know that we’re in your corner.
“In February, many banks chose to pass on higher home loan rates in just days, while we took a different approach. We were the slowest of the major banks, waiting over two weeks, so our customers had more time to adjust and plan their finances. We’re doing that again.”
Other banks will pass on the hike as follows:
- Teachers Mutual Bank on 26 March
- AMP on 23 March
- Macquarie on 2 April
- Bank of Melbourne on 31 March
- BankSA on 31 March
- Bankwest on 27 March
- St.George on 31 March
- MyState on 26 March.
Meanwhile, most major non-bank lenders are yet to confirm updated rates following the latest decision.
Second consecutive hike shifts outlook
The March decision signals a shift in monetary policy.
Just months ago, markets were pricing in a roughly 70 per cent chance of a rate cut. Instead, the RBA has now delivered back-to-back increases, lifting the cash rate from 3.85 per cent to 4.1 per cent.
The decision itself was closely contested, with five board members voting to increase rates and four opting to hold.
In explaining the move, the RBA pointed to a combination of factors, including persistent inflation, a tighter-than-expected labour market, and global uncertainty.
“A wide range of data over recent months have confirmed that inflationary pressures picked up materially in the second half of 2025,” the central bank said.
As of January 2026, annual inflation remained at 3.8 per cent, above the RBA’s 2–3 per cent target range, while trimmed mean inflation edged higher to 3.4 per cent.
Housing and food costs continue to be key contributors, alongside elevated services and goods inflation.
Importantly for brokers, the RBA has not ruled out additional rate increases.
Governor Michele Bullock reiterated that the board remains prepared to act as required to return inflation to target, while supporting full employment.
Major banks are already factoring this into their forecasts, with all four of the majors expecting another 25-bp hike at the next rate call on 4–5 May.
[Related: CGT discount ‘skews ownership of housing’, Senate report finds]