NAB raises rates but slams Westpac

by Rachel Seymour 3/12/2009

 NAB rate rises

National Australia Bank has announced today that its standard variable mortgage rate will increase by 25 basis points.

The increase is in line with the central bank's raise earlier this week.

The Reserve Bank of Australia announced on Tuesday that the official cash rate would be lifted by 25 basis points to 3.75 per cent.

NAB's variable mortgage rate will rise to 6.49 per cent from December 4.

The new rate with the National Australia Bank is still lower than rival Westpac, who moved on Tuesday to raise its standard rate by 45 basis points, almost double the RBA rate hike.  Westpac increases its variable home loan rate to 6.76% effective tomorrow.

 

"Today’s announcement will see NAB customers paying $51 a month less in repayments than Westpac customers on an average $300k home loan," NAB group executive Lisa Gray said.

 

In a statement released today, NAB slammed rival bank Westpac, and said that NAB would continue "absorbing higher funding costs for the short term.

The remaining banks from the Big Four - The Commonwealth Bank of Australia and ANZ - have yet to move, saying their rates are under review.


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source: NEWS.com.au
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