SYDNEY, March 19, 2026, 10:17 AEDT
National Australia Bank slipped 0.48% to finish Wednesday at A$47.23, as the market digested the lender’s decision to bump up variable home-loan rates by 25 basis points—0.25 percentage point—after the Reserve Bank of Australia’s latest rate hike. 1
That’s key, with Australia’s major banks hiking mortgage rates following the RBA’s second consecutive increase. NAB posted a 1.80% net interest margin in the first quarter—the difference between loan income and funding costs—leaving investors alert for any shifts in those margins and signs of customer strain. 2
NAB plans to bump up variable home-loan rates starting March 27. “We know another rate increase will be challenging for many Australians,” said Ana Marinkovic, the bank’s group executive for personal banking, who also encouraged borrowers under strain to reach out to NAB sooner rather than later. 3
The Reserve Bank of Australia pushed the cash rate up by 25 basis points to 4.10% on Tuesday, squeezing through with a 5-4 vote. That marks a second increase in a row, with officials citing stubborn inflation as the key concern. Core inflation, which leaves out some of the more volatile items, clocked in at 3.4%—still above the RBA’s 2%–3% target. “The debate was about when to hike, not whether rates should go up,” said Commonwealth Bank economist Belinda Allen. 4
NAB wasn’t the only lender to pass on the increase. Commonwealth Bank confirmed it will bump variable home-loan rates up 25 basis points from March 27. Westpac followed with a round of changes for both home-loan and deposit clients after the rate call. ANZ, according to ABC, matched its major rivals by raising variable mortgage rates 0.25 percentage point. 5
And on the demand side, NAB’s Consumer Spend Trend report—out the same day as the rate decision—showed a 0.4% bump in February spending. That points to a steady first quarter, even before the most recent hike made its mark on borrowers. 6
NAB Chief Economist Sally Auld, in a March 17 note, flagged a “material risk” that inflation could linger above target for longer than anticipated. NAB is still penciling in another quarter-point hike in May. The share price, then, remains tethered not only to bank performance, but also to what the RBA does next. 7
But it’s not just a win for banks. Sure, elevated mortgage rates can prop up revenue, but they’re also turning the screws on households, increasing repayment pressure and drawing closer attention if cost-of-living strains deepen. Marinkovic flagged that tension, and with the RBA split in its decision, there’s no clear signal yet on where rates might peak. 3
Earnings momentum remains in play for the stock. Last month, Reuters highlighted that Australia’s largest business lender saw first-quarter cash earnings climb 16% to A$2.02 billion, buoyed by robust gains in both business and home loans, briefly sending shares to a fresh A$47.96 peak. Even after slipping on Wednesday, NAB hasn’t drifted far from that level, with competition from Commonwealth Bank and Westpac still sharp. 8
