Banks ready to raise home loan rates

The ANZ Bank has increased its fixed home loan rates by 0.20 percentage points effective from today and executives are expected to meet today to consider how much to increase its variable rate. Last week the NAB became the first major bank to increase its standard variable home loan rate outside of any increase in the official rate by the Reserve Bank, while spokesmen from Westpac and the Commonwealth Bank have said that their interest rates are under review. The 0.12 percentage point increase from NAB will only partially recover higher funding costs, increasing pressure on the other big banks who may have been hoping for one of their rivals to pave the way for a round of 0.25 percentage point increases.

By The Australian Financial Review