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NAB joins rate jump bandwagon
Released 14 February 2012

National Australia Bank (NAB) has joined the other major banks in lifting its standard variable rate following the Reserve Bank of Australia’s decision to leave rates the same last week (7 February 2012).      

NAB announced its standard variable home loan interest rate would increase by 0.09% to 7.31 per cent from Monday 20 February.

NAB Personal Banking Group Executive Lisa Gray said NAB has had the lowest standard variable rate of the major banks for 32 months and had committed to maintaining the lowest rates 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."

Homeside and UBank will increase their standard variable home loan rate by 0.09 per cent, effective from Friday 24 February 2012. ANZ will increase its standard variable home loan rate to 7.36 per cent, CBA to 7.41 per cent and Westpac to 7.46 per cent.