12/11/2010 - 11:58

Westpac, NAB lift rates more than 25bps

12/11/2010 - 11:58

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Westpac and National Australia Bank have joined the ANZ and Commonwealth in lifting their lending rate above the official rate rise of 0.25 of a percentage point.

Westpac, NAB lift rates more than 25bps

Westpac and National Australia Bank have joined the ANZ and Commonwealth in lifting their lending rate above the official rate rise of 0.25 of a percentage point.

NAB lifted its standard variable rate by 43 basis points to 7.67 per cent.

The bank said it would also abolish early exit fees on new and existing NAB home loans.

Interest rates on NAB business loans will also rise by 43 basis points, the bank said in a statement.

NAB said interest rates on deposits will rise by between 25 and 100 basis points.

The rate rises will take effect from Monday, but NAB said it had yet to announce changes to interest rates from its Homeside unit.

Westpac increased its SVR by 35 basis points to 7.86 per cent.

Westpac did not announce any abolition of its $700 exit fee, but said it would discount its three-year fixed home loan rate by 40 basis points to 7.09 per cent.

Westpac said its decision to lift its SVR means repayments on the average $250,000 home loan will rise by about $56 per month.

Retail and business banking boss Rob Coombe attributed the move to the bank's rising average cost of funding which squeezed its net interest margin by 19 basis points in 2009-10.

"In this context, our interest rate decision has not been taken lightly," he said in a statement.

"We have carefully balanced the varied interests of all our stakeholders, depositors, home loan customers, shareholders and staff, recognising our obligation to those stakeholders to run a sustainable bank."

The Commonwealth Bank lifted its rates immediately after the Reserve Bank announced the increase last week by 45 basis points to 7.81 per cent.

On Wednesday ANZ lifted its rates by 39 basis points to 7.8 per cent.

Bankwest's standard variable rate is 7.3 per cent.

 

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