LEADING Hunter financial lenders say they are assessing their position before acting on the back of the Reserve Bank of Australia's decision to raise interest rates for the first time in 12 years.
Greater Bank said it was reviewing its position on interest rates following the RBA move to to increase the official cash rate by 25 points to 0.35 per cent.
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Greater chief executive officer Scott Morgan said that while the announcement has come little surprise, the customer-owned bank would continue to monitor the situation before announcing any changes.
"It been almost three years since we have increased our variable interest rates and while today's move by the RBA is a key driver for change, there are other factors we need to consider before making any decision," he said.
"These include costs associated with funding and servicing loans, and ensuring we continue to meet regulatory responsibilities.
"We are currently in the process of reviewing all these factors, as well as keeping an eye on how other financial institutions respond."
Newcastle Permanent chief executive officer Bernadette Inglis said that the Perm had placed its deposit and lending rates under review following the RBA's move.
"We understand that our customers are keen to know the outcome of our review and we will include information on our website if we decide to implement any changes," she said.
"Newcastle Permanent is proudly customer-owned. Customers can be certain that we will continue to offer great value and award-winning products and services, while balancing the needs of all our customers, be they depositors or loan holders, when making a decision on interest rate moves."
It is the first rate increase in official interest rates since November 2010.
