NAB lifts interest rates after RBA November rise

NAB has become the first big four bank to pass on the RBA’s November interest rate rise in full.

NAB has become the first of the big four banks to pass yesterday’s 0.25 per cent interest rate rise on in full, announcing this afternoon it will increase its basic variable home loan rate from 17 November 2023.

The rate will go from 6.59 per cent currently to 6.84 per cent.

NAB will also increase its reward saver bonus interest rate by 0.25 per cent from the same date, bringing the total savings interest rate to five per cent.

Aussie mortgage holders are awaiting news from the other Big 4 banks about whether they will also pass on the Reserve Bank of Australia’s (RBA) latest interest rate rise.

NAB group executive for personal banking Rachel Slade encouraged anyone concerned about their finances to reach out to their bank as soon as possible.

“While most of our customers are in good shape, there may be some people who are more concerned about the first rate rise since mid-year which is why it’s crucial to reach out to your bank as soon as you can,” she said.

NAB will pass on the RBA’s November interest rate rise in full. Picture: NCA NewsWire / John Gass.

The news follows a similar decision from Adelaide Bank, part of the ASX-listed Bendigo and Adelaide Bank, which has announced it would increase its fixed-rate loans for owner-occupiers by 0.1 per cent per annum for one-year products, 0.25 per cent for two-year, 0.45 per cent for three-year and 0.55 per cent for four-year and five-year offerings starting this Friday.

RBA governor Michele Bullock dealt a fresh blow to borrowers with a 13th interest rate rise in the current cycle while cautioning that inflation will be higher in 2024 than previously expected.

Homeowners are awaiting news on interest rates from the other Big 4 banks.

Ms Bullock said Tuesday’s decision to lift rates by 25 basis points to 4.35 per cent was necessary as progress on lowering inflation had been slower than anticipated.

“The board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable time frame,” Ms Bullock said in a statement accompanying the decision.

A rebound in property prices, still-hot services inflation and the resilience of the jobs market meant inflationary pressures were more persistent than the RBA had forecast, forcing the central bank to hike rates in order to return inflation to the bank’s two to three per cent target.

– with Newswire.

Originally published as NAB lifts interest rates after RBA November rise