More banks follow ANZ interest rates lead
(15 February 2012 – Australia) Both Commonwealth Bank (CBA) and National Australia Bank (NAB) defied Treasurer Wayne Swan and raised interest rates.
The rates drama began as Westpac and ANZ defied Treasurer Wayne Swan and lifted variable rates by 0.10 and 0.06 percentage points respectively on Friday, after the RBA held its cash rate steady.
NAB said last night it would lift its standard variable home loan interest rate by 9 basis points to 7.31 percent. Earlier CBA, Australia's biggest mortgage bank, announced that its standard variable mortgage rate would rise 10 basis points to 7.41 percent.
For both, the rate rise takes effect from Monday.
Also yesterday, Bendigo and Adelaide Bank increased its standard variable mortgage rate by 15 basis points to 7.45 percent.
In the space of a week borrowers have gone from expecting an interest rate cut to being hit with a rate rise.
Still, the rate moves may have a silver lining. Analysts say the higher cost of credit through the economy has increased the chance that the Reserve Bank will cut its official cash rate next month.
As with other banks, CBA blamed the rate increase on rising funding costs, adding that greater uncertainty emanating from Europe was exacerbating the situation.
'In making this decision, we have been cognisant of our total funding costs, of which the official cash rate is only one factor,'' said CBA's group executive of retail banking, Ross McEwan.
NAB said last night it would lift its standard variable home loan interest rate by 9 basis points to 7.31 percent. Earlier CBA, Australia's biggest mortgage bank, announced that its standard variable mortgage rate would rise 10 basis points to 7.41 percent.
For both, the rate rise takes effect from Monday.
Also yesterday, Bendigo and Adelaide Bank increased its standard variable mortgage rate by 15 basis points to 7.45 percent.
In the space of a week borrowers have gone from expecting an interest rate cut to being hit with a rate rise.
Still, the rate moves may have a silver lining. Analysts say the higher cost of credit through the economy has increased the chance that the Reserve Bank will cut its official cash rate next month.
As with other banks, CBA blamed the rate increase on rising funding costs, adding that greater uncertainty emanating from Europe was exacerbating the situation.
'In making this decision, we have been cognisant of our total funding costs, of which the official cash rate is only one factor,'' said CBA's group executive of retail banking, Ross McEwan.
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