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NAB Hikes Interest Rates to 9.61%
NATIONAL Australia Bank has lifted its standard variable mortgage rates by 15 basis points.
The bank's standard variable rate home loan will rise to 9.61 per cent from tomorrow.
NAB said the rate hike reflected "the sustained increases to long-term wholesale funding costs all banks had been experiencing".
NAB's announcement follows similar rate rises on Friday by Commonwealth Bank, which increased its standard mortgage by 14 basis points, and ANZ, which lifted its rate by 15 basis points.
The Commonwealth's standard variable home loan rate rose from 9.44 per cent to 9.58 per cent from today for new and existing customers.
ANZ's standard variable rate lending rate rose from 9.47 per cent to 9.62 per cent.
St George Bank and BankWest lifted their rates within the past week. Meanwhile, AMP Bank also said it would increase its standard variable home loan interest rate for existing customers by 0.20 per cent, to 9.67 per cent. The standard variable rate for new customers will increase by 0.11 per cent to 9.67 per cent per annum. The changes take effect this week.
Last week the Reserve Bank decided there was no need to lift official rates.
NAB chief executive officer for Australia, Ahmed Fahour, said the rise in rates reflected extra increases in the costs of funds from the global credit crunch.
"Australian banks continue to witness significant increases in funding costs," Mr Fahour said.
"This has been made more acute by the industry's increased reliance on international funding to meet demand for credit."
"While this change still does not recoup the full impact of increased wholesale funding costs, we have a responsibility to balance the needs of customers and shareholders."
Source: Website www.news.com.au
Article from: AAP
Date: July 14, 2008 02:08pm
