Job numbers worse than expected, rising global interest rates have seen one major bank increase its standard variable home loans.
Ross Greenwood: NAB broke ranks with rivals by raising its standard home loan rate, affecting millions of customers by 0.7 percent to 5.32.
The hike is effective next Friday.
Monthly repayments on a typical $500,000 loan will rise by $20 a month.
Meg Bonighton: We don’t take these decisions lightly, and certainly the market is very challenging and continues to remain very complex for us.
Ross: Other NAB rates will also move.
Investors will pay a quarter of a percent more but first home buyers will be offered a deal – 3.69 percent, fixed for two years.
The move follows the US Federal Reserve raising official rates for the third time in 15 months and more are coming.
Janet Yellen: This year looks to a total of three increases.
Ross: The NAB rate decision overlooks a worse-than-expected unemployment rate – up to 5.9 percent.
6,400 jobs were lost in February, but plenty more households are struggling to find work.
Bill Shorten: It’s over 1.1 million of our fellow Australian have recorded to the ABS but they would like more work than they’re getting.
Ross: The underemployment rate – people wanting more work is 8.6 percent – equal to the highest on record.
And the trick to more work?
Find a job that technology can’t easily replace.
Joel Werman: Recently trying to employ new physios, it’s not easy to get physicals out there.
Ross: The rob these numbers is it more jobs are being created in Australia, then interest rates here are likely to rise.
And of course, that’s influenced by US interest rates – if they’re rising then here in Australia, eventually, our rates must rise as well.
Ross Greenwood; Nine News
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