NAB becomes last major bank to raise interest rates

National Australia Bank (NAB) has become the last major institution to increase interest rates on its mortgage packages.

Having seen Westpac and ANZ hike their rates towards the end of last week, the organisation increased its own standard base rate by nine basis points. The announcement came just hours after the Commonwealth Bank made a 0.1 per cent readjustment.

All four major banks have been quick to boost their interest rates after the Reserve Bank of Australia (RBA) surprised everybody by shunning a cut last week.

Head of personal banking at the NAB Lisa Gray insisted that the decision had not been easy.

"The state of the European and UK economies is having a serious impact on funding costs," she remarked.

Some smaller banks may be more appealing to Aussies, as the likes of the Bank of Queensland have pledged not to boost interest rates until the RBA's board meets again in March at least.

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