National Australia Bank (NAB) yesterday announced an additional nine basis points increase to its standard variable rate.
The rise brings the bank’s standard variable home loan rate to 9.36 per cent and it set to take effect as of today.
Executive director and chief executive of the bank Ahmed Fahour said the increase reflected sustained increases to short- and long-term wholesale funding costs.
“The true cost of funding a home loan is no longer reflected by the RBA cash rate, and because of the premium banks are paying in wholesale funding markets we have an ongoing responsibility to balance the needs of both our customers and shareholders,” he said.
Mr Fahour also said that it was fundamental that the price of mortgages reflected the true cost of funding “in order to ensure that the Australian mortgage system continues to function well.”
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