Big banks raise fixed rate loans

National Australia Bank will lift its 1 to 5 year fixed rate home loan rates by 20-50 basis points effective from Monday 26 October 2009.

Westpac, the Commonwealth Bank and ANZ have also raised rates on their suite of fixed rate loans in recent weeks. Commonwealth raised its fixed rates by 25-45 basis points and blamed increased funding costs.

The Reserve Bank is expected to raise official interest rates by as much as 0.50 per cent next week.