NAB announced it will increase interest rates on standard variable mortgages by 25 bps, on par with the Reserve Bank of Australia's rise earlier this week.
NAB is only the second bank to announce a rate rise however its move is pointedly below the 45 bps increase made by Westpac on Tuesday.
Westpac's decision to raise rates above the RBA sparked outrage from Treasurer Wayne Swan who urged consumers to vote with their feet.
It appears NAB's move is calculated to perhaps persuade those customers who may feel pinched by Westpac's increase.
NAB group executive of Personal Banking Lisa Gray urged Westpac customers to consider NAB.
"Today we are sending a message to customers at Westpac, and the other banks, that NAB can offer them a better deal," she said, as reported in the SMH.
Related stories:
Westpac sticks neck out on rate rise - Westpac remains the first and only bank to raise rates after the RBA announced its decision to hike the official cash rate by 25bps, but analysts are speculating the other major banks are just letting it take the heat ebfore they do the same.
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Josh on
03 Dec 2009 06:29 PM
Just wise business from NABs part, stick it to Westpac, good on them i say, but on the other hand, shouldnt of caused an up-roar when retracting there LOC from their customers.