All big four banks said on Tuesday they will raise their home loan rates by a quarter-point, passing on the central bank's eighth rate hike in as many months to their customers in full.
The Reserve Bank of Australia lifted its cash rate by 25 basis points to a 10 year high of 3.1% on Tuesday, and reiterated that further policy tightening would be needed to contain inflation.
The Commonwealth Bank of Australia, National Australia Bank, and Australia and New Zealand Banking Group will hike their rates from the end of next week, while Westpac Banking Corp's hike will be effective December 20, the banks said in separate statements.
Australian banks have been in lockstep with the central bank in raising rates in the current tightening cycle, one of the most aggressive in decades, as banks try to prop up their margins and profits in a cooling housing market.
Credit demand, housing market, employment and economic growth could be affected by heightened borrowing costs, which could pose challenges for the lenders.