Deposit rates increase by up to 0.35%. Lending rates increase by up to 0.25% - 8 November 2007

Thursday, 8 November 2007

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

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges