9News: Global interest rates and unemployment figures rise

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

John Symond talking interest rates

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