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NAB surprises market in rates call today

NAB

NAB has this morning announced it will hold firm on its standard variable rates, defying its big bank competitors.

NAB will leave its standard variable rate on hold at 5.24 per cent.

The announcement comes 12 days after Westpac first announced they would hike rates by 0.14 per cent.

About a week later, ANZ and CBA announced hikes of 0.16 and 0.15 per cent, respectively.

This announcement comes as investors and small business owners alike are increasingly struggling to secure finance – being met with tougher lending conditions and LVR requirements.

Big four accounting firm EY found that 24 per cent of SMEs see access to credit as one of their key risks for 2018.

EY Oceania growth markets leader Rob Dalton believes the findings demonstrate a clear correlation between the ongoing Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the heightened concern.

“This data demonstrates that there’s a real perception among our medium-sized businesses that banks have started a pre-emptive lending crackdown that is increasing the cost and reducing the accessibility of direct financing,” said Mr Dalton.

“Companies are exploring their options and alternative forms of finance beyond bank lending. There’s a huge amount of private capital out there looking for a home and middle-market businesses are looking to access this to fund their growth.”

NAB surprises market in rates call today
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