Deposit rates increase by up to 0.35%. Lending rates increase by up to 0.25%

National Australia Bank today announced deposit rates on certain products will increase by up to 0.35% while the variable home loan rate will increase 0.25%.

This follows the Reserve Bank of Australia's decision to increase the official cash rate by 0.25%.

NAB Australia Chief Executive Officer Ahmed Fahour said: "This decision takes into consideration both our depositors and borrowers.

"Our wholesale funding cost remains above normal levels due to the impact of the United States sub prime instability and its impact on world financial markets. We have been absorbing this additional cost on our variable home lending.

"The additional cost in the wholesale funding market has been approximately 0.20% to 0.30% and is being monitored on a daily basis. If the higher level of wholesale funding cost persists this will need to be addressed," he said.

Full details of interest rate changes will be published in National newspapers.

Media contact: 
Rebekah Miles
National Australia Bank
M: 0400 541 139