ANZ and NAB have increased interest rates on a raft of business lending products, citing higher costs of bank funding.
ANZ said in a statement that its Equity Manager Rate has increased by 27 basis points to 5.98 per cent.
At the same time, ANZ said that all overdraft and term loan business lending linked to the following indices has been raised by 21 basis points:
*Business Credit Facility Index (now at 8.30 per cent)
*Business Mortgage Index (now at 7.37 per cent)
*Business Saver Index (now at 6.87 per cent)
*Fully Drawn Advance Variable Index (now at 9.17 per cent)
*Reference Rate (now at 9.05 per cent)
*Retail Index (now at 8.97 per cent)
*Business Advantage Secured Index (now at 7.37 per cent)
*Business Advantage Unsecured Index (now at 9.37 per cent)
*Esanda Dealer Reference Rate (now at 4.40 per cent)
*Funding Index with a bank bill swap bid rate (BBSY) reset of more than 63 days (now at 1.17 per cent)
*Funding Index with a BBSY reset of less than or equal to 63 days (now at 1.25 per cent).
The move comes after NAB increased interest rates on a number of its own business loans from 29 January.
NAB increased its 30-day rate for business loans by 29 basis points, its 60-day rate by 13 basis points and its 90-day rate by 8 basis points. There are no changes to NAB’s 180-day, 150-day and 120-day rates.
The major bank said the move reflected the need to balance customer needs and shareholder returns, while ANZ defended its decision by saying “bank funding costs have been rising since May last year in anticipation of an increase in US interest rates by the Federal Reserve.”