National Australia Bank today joined ANZ Banking Group in lifting its standard variable mortgage rate by ten basis points, with effect from Monday.
NAB said its standard variable home loan interest rate would rise to 9.46 per cent per annum, while the ANZ Bank's new rate will be 9.47 per cent pa.
NAB said the change to its home loan rate "reflects the sustained increases to long term wholesale funding costs".
ANZ, which this week reported a seven per cent fall in first half earnings, said its increase followed sustained higher funding costs due to turmoil in global credit markets.
"We have worked hard to absorb increases in wholesale rates in the last several weeks, however the pressure has been sustained and given this we have had to pass some of the higher cost on to customers," ANZ managing director, personal, Brian Hartzer said.
"We hope global market conditions begin to ease as the year goes on," he said.
Mr Hartzer said the bank was committed to cutting lending rates when wholesale interest rates fell.
"We understand higher interest rates are stretching many household budgets and we continue to have a range of options available to help customers," he added.
