NAB raises interest rates

April 27, 2008, 4:45pm,  185 views

I don’t understand how banks are able to raise interest rates independently of a Reserve Bank decision.

AAP reports the National Australia Bank has lifted its variable mortgage interest rates by 0.1 percentage points, raising its standard variable home loan rate to 9.46 percent.

The move comes after the ANZ bank on Thursday decided to raise rates by 0.1 percentage point.

Both the ANZ and NAB have increased their interest rates without the prompting of the Reserve Bank of Australia.

At 9.46 percent, NAB’s variable mortgage rate is the second highest among the major banks. ANZ and St George lead the pack at 9.47 percent. Commonwealth Bank of Australia is next at 9.44 percent, while Westpac has the lowest at 9.37 percent.

It’s interesting but unsurprising that NAB made its announcement on a long weekend.