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St George announced a 20 basis points increase to its standard variable home loan rate on Friday to 9.67 per cent.
The new rate will apply to both new and existing customers, and come into effect Tuesday 8 July.
The sustained increase in the difference between cash rates and 90 day rates was the predominant reason behind the rate rise, the bank said.
“While we have already completed our wholesale funding requirements for this financial year, the spread between cash rates and 90 day rates in particular remains significantly higher for the industry than a year ago,” Michael Cameron, CFO at St George said.
Even with the rate adjustment, the bank said it would still not recover all increased funding costs for the financial year.
Published: 07-07-08
