SYDNEY, Feb 4, 2026, 17:19 (AEDT) — After-hours trading underway.
- Shares of Macquarie Group slipped 1.4%, ending at A$213.83, underperforming the wider market rally.
- Macquarie Bank announced it will raise variable home loan and deposit rates by 25 basis points starting Feb. 20.
- Investors are eyeing Macquarie’s Feb. 10 operational briefing for clues on trading conditions and the interest rate environment.
Macquarie Group shares dipped 1.4% to close at A$213.83 on Wednesday, while Australia’s S&P/ASX 200 climbed 0.8% to 8,927.80. (Yahoo Finance)
Lenders are adjusting prices after the Reserve Bank of Australia raised the cash rate target by 25 basis points to 3.85% on Tuesday, marking its first increase in two years. Commonwealth Bank and Westpac announced their new variable home loan rates will kick in on Feb. 13 and Feb. 17, respectively. National Australia Bank and ANZ both set their changes for Feb. 13. (Reuters)
Macquarie Bank announced it will hike variable interest rates on transaction and savings accounts by 0.25 percentage points starting Feb. 20. The lender will also raise variable home loan reference rates by the same margin. Ben Perham, head of personal banking, said the bank plans to “wait until 20 February before passing through this rate increase.” He added that Macquarie’s home lending portfolio has been expanding at about four times the pace of Australia’s largest banks. (Macquarie)
Materials and energy stocks led the broader market higher, while financials also saw gains, an Australian Broadcasting Corporation market update reported. (ABC News)
Macquarie surged roughly 2.4% in the previous session, making the stock’s movement volatile over the two days tied to the central bank’s shift back to tightening. (MarketScreener Australia)
Macquarie investors are focused on how the higher rates will impact its retail bank. Rising mortgage rates could dampen demand, yet improved deposit rates risk pushing up funding costs amid fierce competition for savers. In the short run, this push and pull might carry more weight than the headline cash rate change itself.
The rate story might not end here. In its quarterly Statement on Monetary Policy, the RBA upgraded its growth and inflation forecasts, projecting underlying inflation—the trimmed mean measure that excludes large price swings—to climb to 3.7% by June, up from 3.4%. Headline inflation is expected to hit 4.2% around mid-year. These projections assume 60 basis points worth of rate hikes this year, Reuters reported. (Reuters)
But there’s a catch. Faster-than-expected rate hikes could pinch borrowers and stall credit growth. A tighter funding market might squeeze margins if deposit costs climb faster than loan rates. Plus, a fresh spell of market calm would put Macquarie’s client-driven trading income to the test.
As the market remains shut, focus shifts to Macquarie’s operational briefing set for Tuesday, Feb. 10, at 10:00 a.m. AEDT. Investors will be eager for insights on the group’s current conditions and its strategy amid a rising interest rate environment. (Macquarie)
