Reserve Bank of NAB hikes

And here is the last of the majors:

National Australia Bank (NAB) today confirmed that its standard variable home loan interest rate would increase by 0.09% to 7.31% pa – the lowest of the major banks.

NAB’s standard variable home loan rate of 7.31% pa is effective from Monday 20 February and means NAB customers will save up to $37.50 a month on an average $300,000 variable rate home loan compared to the other major banks.

Standard Variable Rate pa
NAB 7.31%
ANZ 7.36%
CBA 7.41%
WBC 7.46%

Lisa Gray, Group Executive NAB Personal Banking, said NAB has had the lowest SVR of the major banks for 32 months and had committed to maintaining the lowest SVR of the major banks through 2012.

“These decisions are never taken lightly. We know that current economic uncertainty is impacting on our customers, which is why last week we made the commitment to maintain the lowest SVR of any of the major banks throughout 2012.

“However, the state of the European and UK economies is having a serious impact on funding costs. As recently as last week NAB acquired $1.5 billion of new funding on the domestic bond market at a premium that is around 70 basis points higher than the last equivalent issue just 8 months ago. As funding costs continue to rise we are unable to continue to absorb all of these costs.

“We are committed to remaining competitive. NAB has led the industry and abolished the most disliked fees, including overdrawn account fees, account keeping fees and mortgage early exit fees for new and existing customers. NAB customers will continue to benefit from having the lowest standard variable rate of any of the major banks today, tomorrow and for the rest of 2012,” Ms Gray said.

NAB also announced it would increase its rate on standard variable business rate lending products by 0.09%, effective from Monday 20 February 2012. Homeside and UBank will increase their standard variable home loan rate by 0.09%, effective from Friday 24 February. NAB deposit and credit card interest rates will remain unchanged.

Comments

  1. So HnH,

    We know you think the RBA erred last week. So what do you think the RBA will do next month and what will the Banks do?

      • Sherlock,

        Yeah I know, I’m just making conversation and hoping that we can solve something through logical argument. Whats you view?

      • It’s a tricky one ACE. We’re in unknown waters now. Need to see the forthcoming ABS employment survey and the retail sales number (this one won’t be good). One co-worker has imported his new lawn-mower via Amazon and another has bought a BBQ from the same place. DFO Southwharf very quiet on Saturday arvo. Furniture and bedding shops absolutely dead. The area of IT that I work in has gone quiet. Very few jobs advertised last week. It’s a narrow view of the economy but from where I sit, I see dark clouds. So I lean towards a cut but you never know what the ABS will come up with.

      • Banks over the foreseeable future will have little or no growth in earnings, given the lack of credit demand from the private sector and corporate sectors. Balance sheet recession is upon us and debt reduction will be the mantra. In a global deflationary environment, debt is toxic.

        So banks will want to keeps margins healthy to maintain profits and keep shareholders happy and of course to pay for the bonuses for all those banksters.

        RBA, as with all central banks, are now seen for what they are – redundant.

    • Comedy gold coming from RBA meeting to you ACE.
      RBA making rates adjustments post facto of the banks they are supposed to be regulating.

      Glenn can be Agent 86 but who is frocking up for 99?? Swannies the Chief.
      I gotta go i’m havin too much fun with this.
      Oh and Siegfried. you know who that is.