NAB reveals rates decision
(12 November 2010 – Australia) National Australia Bank has announced it will raise its standard variable interest rate on home loans by 43 basis points to 7.67 percent, adding it would also abolish exit fees on home loans.
NAB also revealed that interest rates on business loans would be subject to the 43 basis point hike and take effect on Monday.
On the brighter side for depositors, the bank said that savings account interest rates would rise between 25 and 100 basis points.
NAB’s 43 basis point increase to its SVR is just two basis points shy of the rise made by Commonwealth Bank on November 2, which attracted community outrage toward the Sydney-based lender. ANZ lifted its SVR by 39 basis points on Wednesday.
NAB attributed its increase to the rising average cost of funds, driven by both higher wholesale funding costs and the cost of deposits.
On the brighter side for depositors, the bank said that savings account interest rates would rise between 25 and 100 basis points.
NAB’s 43 basis point increase to its SVR is just two basis points shy of the rise made by Commonwealth Bank on November 2, which attracted community outrage toward the Sydney-based lender. ANZ lifted its SVR by 39 basis points on Wednesday.
NAB attributed its increase to the rising average cost of funds, driven by both higher wholesale funding costs and the cost of deposits.
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