Big four move in unison
(9 October 2009 – Australia) All four major banks have raised their standard variable home loan rates by 25 basis points in response to the Reserve Bank's official cash rate rise.
ANZ was the first to raise its rates and was followed swiftly throughout the rest of the day by the remaining three big banks.
NAB announced their decision just after 3.00pm, Commonwealth just after 4.00pm and Westpac was last at 4.30pm.
The big four have all increased their standard variable home loan rates by 0.25 percent and NAB and Westpac’s variable business lending rates have also increased by 0.25 percent.
ANZ increase its deposit account rates by 0.50 percent, 0.25 percent above the standard cash rate and the remainder of the big four banks have increased their deposit account rates by 0.25 percent, this is an indicator of the competition in the market for savings.
Westpac’s credit card rates will be changed in line with the RBA’s 0.25 percent decision, while ANZ’s credit cards rates are still under review and there has been no mention at this stage of credit card changes from the other two big banks.
Lisa Gray, group executive, NAB Personal Banking, said that the banks take a number of factors into consideration when determining interest rates and the cash rate is one of those.
The banks also consider money market conditions, term funding costs, the cost of raising deposits and the competitive market. Overall, the average cost of funding a home loan continues to rise, she concluded.
NAB announced their decision just after 3.00pm, Commonwealth just after 4.00pm and Westpac was last at 4.30pm.
The big four have all increased their standard variable home loan rates by 0.25 percent and NAB and Westpac’s variable business lending rates have also increased by 0.25 percent.
ANZ increase its deposit account rates by 0.50 percent, 0.25 percent above the standard cash rate and the remainder of the big four banks have increased their deposit account rates by 0.25 percent, this is an indicator of the competition in the market for savings.
Westpac’s credit card rates will be changed in line with the RBA’s 0.25 percent decision, while ANZ’s credit cards rates are still under review and there has been no mention at this stage of credit card changes from the other two big banks.
Lisa Gray, group executive, NAB Personal Banking, said that the banks take a number of factors into consideration when determining interest rates and the cash rate is one of those.
The banks also consider money market conditions, term funding costs, the cost of raising deposits and the competitive market. Overall, the average cost of funding a home loan continues to rise, she concluded.
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