NAB is the latest major bank to announce rate increases that exceed the RBA’s 25 basis points hike.
NAB slapped 29 basis points onto its standard variable rate to 8.98 per cent, however it has reduced its four and five year fixed products by 11 basis points.
“Unfortunately, the current environment means that the RBA cash rate does not reflect the true cost of funding a home loan anymore,” said NAB executive director and CEO Ahmed Fahour.
“Even with this additional 0.04 per cent change on variable rate products NAB is continuing to absorb a significant portion of the increased wholesale funding costs we have incurred since August 2007,” he continued.
Mr Fahour added that the rate changes were made with the desire to “balance both the needs of customers as well as shareholders”.
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