Sydney, Feb 4, 2026, 16:50 AEDT — Trading after hours.
ANZ Group Holdings Ltd shares closed 0.8% higher at A$37.07 on Wednesday, after trading in a range from A$36.10 to A$37.37. Roughly 4.9 million shares were exchanged.
Investors are re-pricing Australian banks following the Reserve Bank of Australia’s rate hike and lenders passing those costs onto borrowers. On Tuesday, the RBA pushed the cash rate target up by 25 basis points, to 3.85%. Soon after, the four major banks announced they would raise variable home-loan rates by the same margin, with adjustments set to take effect between Feb. 13 and Feb. 17.
In its statement, the central bank noted inflation rose “materially” in the latter half of 2025, driven by stronger private demand and a tighter housing market adding to capacity pressures. The board, in a unanimous call, said inflation is expected to remain above target for a while and that future moves will be data-dependent as it assesses the risks. Reserve Bank of Australia
ANZ announced a 0.25% annual hike on variable interest rates for Australian home loans starting Feb. 13. Pedro Rodeia, group executive for Australia Retail, encouraged stressed borrowers to “reach out early.” The bank estimates this will tack on about A$79 monthly to repayments for a A$500,000 owner-occupier loan with principal and interest. ANZ
Higher official rates can boost bank earnings by expanding net interest margins — the difference between loan income and deposit costs. But that gain comes with risks: slower credit growth and increased pressure on households facing rising mortgage payments.
Traders are eyeing ANZ’s first-quarter trading update on Feb. 12 for signs of lending momentum, funding costs, and any early changes in bad-debt trends following the policy shift.
The central bank plans to release minutes from its February meeting on Feb. 17, a key date investors watch to assess how soon the board might tighten policy again.
In the short run, attention centers on how fast banks raise deposit rates and if the scramble for funding chips away at gains from higher loan yields.
But the risk is clear: rising repayments could strain more borrowers, boosting loan arrears and forcing banks to hike provisions, which would weigh on earnings even as headline rates climb.
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