St George Bank opts to increase home loan rates

The fallout from the Reserve Bank of Australia's (RBA) decision not to lower interest rates last week continues, as another bank announced it was raising its home loan rates.

St George Bank has now hiked its standard variable home loan rate by 12 basis points, bosses revealed.

According to the Australian Associated Press, the organisation has opted to go even further than the country's four major banks, which have all lifted their rates in the past week, but only by a maximum of ten basis points.

Chief executive at St George Bank Rob Chapman said that making the readjustment was a difficult decision.

"It's important for the Australian economy and for our customers that as a business we remain strong, particularly in an unstable economic environment," he was quoted as saying.

Yesterday (February 14th), the RBA came out in support of Australia's banks, suggesting that the current high cost of lending had left them with little choice but to increase interest rates.

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