AMP Ltd
(ASX:AMP) is to raise its standard variable mortgage rate by 30 basis points just above the RBA’s 25 basis points rise to the Official Cash Rate last week.
According to a report in the Sydney Morning Herald AMP Banking's standard variable home loan rate will increase to 6.69 per cent on Wednesday for new customers and on Friday for existing customers.
The news follows Westpac’s rate hike of 45 basis points which has caused outrage and even caused Treasurer Wayne Swan to call the move unjustified.
However Westpac CEO Gail Kelly is standing by the bank’s decision blaming higher funding costs for the move.
The Commonwealth Bank raised their variable rate by 37 basis points, ANZ by 35 basis points and NAB decided to match the RBA passing on a 25 basis point rise to its rates.
AMP earned $580 million in 2008.
