For months the Australian banks have been bemoaning the impact that the global credit squeeze has had on their home loan margins. With borrowers already under pressure from high house prices and the rates increases made by the Reserve Bank of Australia to contain inflation, none of the big four banks were willing to be first to increase their lending rates for fear of losing market share. But today two of the banks finally decided to increase their lending rates independent of any move by the RBA - National Australia Bank increasing it's standard variable loan by 0.12% to 8.69%, and ANZ Bank increasing it's fixed rate loan rate by 0.25% to 8.54%. The one positive of this move may be that the RBA feels less urgency to increase the official rate by another 0.25% when they next meet, as the banks will have done some of the work for them.
Copyright Enough Wealth 2007