National Australia Bank lifts interest rates
Posted in Interest Rates on July 17th, 2008 by adminNATIONAL Australia Bank will increase its variable home loan rates, following similar moves by two of its major rivals last week.
The country’s second-biggest lender by market value said it would raise its rates by 15 basis points to 9.61 per cent.
NAB Australia chief executive Ahmed Fahour said the change reflects sustained increases in long-term wholesale funding costs due to the fallout 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.”
Economists have said moves by Australian lenders to raise rates outside moves by the Reserve Bank ease pressure on the central bank to consider further official cash rate hikes.
Last week, ANZ increased its variable mortgage rate by 15 basis points, and Commonwealth Bank of Australia raised its rate by 14 basis points. Two weeks ago, St George lifted its rates by 20 basis points.
Written By: Lyndal McFarland, Dow Jones Newswires | July 14, 2008
Source: http://www.theaustralian.news.com.au