Despite many economists forecasting a 50 basis point or 0.50% rise to the cash rate target in October, the Reserve Bank of Australia instead moved by 25 basis points or 0.25%.
Tuesday's statement from RBA Governor Dr Philip Lowe reflects the central bank wanting to see more economic data to come out to see the effects of its more aggressive 50bps hikes.
With a cash rate at a nine-year high of 2.60%, what does that mean for home loans and savings? Below is a market snapshot of what's going on for borrowers and savers.
A day after the RBA's announcement, a raft of banks and lenders have already made announcements.
Home Loans
The average owner occupier home loan size of $589,000 over 25 years going from 4.00% p.a. to 4.25% p.a. adds $82 per month to the mortgage.
CommBank
Australia's largest bank will increase variable home loan rates by 25 basis points, effective 14 October.
Westpac
Westpac will increase variable home loan rates by 25 basis points, effective 18 October.
NAB
NAB will increase variable home loan rates by 25 basis points, effective 14 October.
ANZ
ANZ will increase variable home loan rates by 25 basis points, effective 14 October.
At the time of writing, other banks such as Macquarie and Suncorp have also announced variable-rate hikes of 25 basis points, effective 14 October.
Savings Accounts
A savings account going from 3.00% p.a. to 3.25% p.a. with a deposit size of $50,000 and interest compounded monthly results in $1,649 saved in a year - an increase of $128.
Note that savings interest is calculated as income and taxed accordingly.
CommBank
From 14 October CBA's NetBank saver rate will increase by 25 basis points to 1.10% p.a. and the five-month intro period will increase by 70 basis points to 3.00% p.a.
Other savings account rates will increase by up to 30 basis points.
Westpac
From 18 October Westpac will increase the total rate for its Life account by 25 basis points to 2.60% p.a.
The eSaver will also increase by 25 basis points to 2.55% p.a.
For under-30s, the Spend&Save account will earn up to 3.75% p.a. - an increase of 25 basis points - if savers meet the bonus criteria.
To meet the bonus young savers must: deposit $2,000 per month into the linked transaction account (to also avoid the $5 monthly fee); make five settled debit card transactions; and grow the account every month.
NAB
While not making a concrete decision, NAB said its deposit rates are constantly "under review".
ANZ
ANZ's digital offering ANZ Plus will increase the savings rate by 25 basis points to 3.25% p.a. from 12 October.
This stands out in Infochoice's product database as the highest ongoing and unconditional savings account rate in the market.
There are no hoops to jump through such as minimum deposits, card transactions or the need to grow the balance - nor is it age-limited; the rate also doesn't expire after 4-5 months, for example.
The deposit limit is $250,000.
Other noteworthy moves
Macquarie
From 6 October the four-month intro account will be boosted by 30 basis points to 4.00% p.a.
It then reverts to 3.20% p.a. thereafter, and represents an increase of 45 basis points, and is effective 14 October.
There are no deposit conditions to attain these rates.
UBank
UBank will increase its Save and USave account rates by 25 basis points, effective 1 November.
The total rate will now be 3.60% p.a. - a 0.10% p.a. base rate and 3.50% p.a. bonus on balances up to $250,000.
To attain the bonus savers must deposit $200 per month.
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