SYDNEY, March 18, 2026, 09:43 AEDT
Shares of National Australia Bank Ltd jumped on Tuesday, tracking gains after the country’s central bank delivered its second consecutive rate hike—a trend investors typically link to stronger bank profits. LSEG figures on Reuters indicated NAB was last up 0.85% at A$47.46 in delayed action.
NAB has lingered close to all-time highs since February, after a robust first-quarter update drove shares to A$47.96. For the three months ended Dec. 31, the bank reported A$2.02 billion in cash earnings—its favored metric for underlying profit. Net interest margin landed at 1.80%, as NAB battled with Commonwealth Bank and Westpac for customer business.
The Reserve Bank of Australia hiked its cash rate by 25 basis points to 4.10% after a narrow 5-4 vote, citing sticky inflation—core still running at 3.4%—and renewed oil price pressure tied to the Middle East. With GDP up 2.6% in the December quarter, Commonwealth Bank economist Belinda Allen commented, “domestic data flow alone justified a rate hike today.” Reuters
NAB wasted no time. Variable home-loan rates jump 0.25 percentage point starting March 27, the bank announced. Personal banking executive Ana Marinkovic warned that another hike would be “challenging for many Australians.” NAB News
NAB’s economists held their line. Following the decision, chief economist Sally Auld flagged a “material risk” that inflation could linger above target, reaffirming the bank’s forecast for a further rate hike in May. NAB News
Peers didn’t lag. Reuters stock pages had Westpac climbing 1.39% in delayed Tuesday trading. Last week, three of Australia’s big four lenders — NAB, Westpac, and Commonwealth Bank — all pointed to a March RBA hike.
That’s part of the reason banks haven’t budged, even with investors glued to oil and central bank signals. Global equities climbed Tuesday, but Brent closed at $103.42 a barrel. Investors are pulling back on rate-cut wagers, inflation nerves still raw with the Middle East conflict ongoing.
Even so, it’s a messy setup. The RBA’s divided decision hints at the tougher choices looming for other central banks, with the Middle East conflict stirring up an oil shock that rattles markets. That environment can sap risk appetite and growth, and rates might stay elevated longer than expected.
