Westpac And NAB Lift Rates In Line With RBA

Post by Sharat on March 4, 2010 · Under Business News, banking, home loans, interest rates, mortgages · Comment

Following the lead first set by rivals CBA and ANZ, on Wednesday Australian banking majors Westpac and NAB matched the central bank interest rate hike of 25 basis points.

Both Westpac and NAB announced on Wednesday that they would increase their standard variable mortgage rates by the same level announced by the Reserve Bank of Australia.

At the same time as announcing its decision, NAB added that its policy of matching the official rise in interest rates had resulted in its mortgage volumes soaring.

NAB’s Lisa Grey strongly defended the lenders policy of keeping interest rates low whilst cutting fees, and said that NAB had seen a surge in mortgage applications last month.

“The uplift is across all our home loan brands,” she said in a statement.

Ms. Grey said that mortgage applications were nearly quadruple the level they were at in February last year.

Both lenders said that would also lift their deposit rates, whilst Westpac said it would increase interest rates on its credit cards.

The interest rate increases undertaken by the Big Four are effective from Friday, following the RBA’s decision to lift interest rates by 25 basis points to 4 per cent, their highest level in more than a year.

Following the most recent rate hike, the Big Four decided to raise their rates in synch with the central bank, after a facing a public backlash for previously having raised their rates by more than that of the central bank.

Compare Australian Home Loan Deals