Major Banks Lifting Their Interest Rates

Australia’s major four banks have all raised their interest rates only a week after official rates went up by the RBA. All rates rises were in line with the one from the RBA and increased by 25 basis points as a result.

The first to act was ANZ, followed by NAB, the Commonwealth and Westpac. All of them acted within the same business day.

ANZ’s announcement was made a few minutes before Australia’s latest September employment figures were released. Luckily for the bank, the figures showed a fall in unemployment.

How the big four will structure their interest rates:

• ANZ’s standard variable rate is in effect since Monday 12. October. It is now 6.06 per cent per annum, equivalent to a 6.16 per cent comparison rate.
• NAB will lift its standard variable home loan rate to 5.99 per cent per annum, coming into effect on October 12.
• Westpac will lift its rate to 6.06 per cent, also from October 12, 2009.
• The Commonwealth Bank will raise its interest rates on Tuesday October 13, taking its ‘Complete Home Loan’ variable rate to 5.99 per cent per annum.

Lisa Gray, the NAB’s executive for personal banking, said: “We take a number of factors into consideration when determining interest rates and the cash rate is one of those. We also consider money market conditions, term funding costs, the cost of raising deposits and the competitive market.”

“Overall, the average cost of funding a home loan continues to rise.”

ANZ said in a statement that its selected savings rates will rise by 0.5 percentage points. CBA,

NAB and Westpac will raise their selected deposit rates by 0.25 percentage points.

ANZ fixed term home loans also see a change in rates with most of them going up between 0.1 and 0.25 percentage points. However, the rate on the 10-year fixed mortgage will go down by  0.25 percentage points.

Westpac raises interest rates on credit cards and business loans by 25 basis points. NAB also pointed out that the bank will be increasing a range of variable business loan rates by 0.25 percentage points.

Meanwhile ANZ is still reviewing interest rate movements on its credit cards and small business loans. The Commonwealth did not discuss in its statement what it intends to do with business or credit card interest rates.

Source: ABC

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