If reports are to be believed, the Reserve Bank of Australia might soon be increasing its interest rates. In preparation for the same, the country's 4 major banks have surged their fixed rate mortgages. National Australia Bank today added its name to the list as it became the last bank to increase fixed rates.

Post the agreement of increased fixed rates, a one year home loan at fixed rate from NAB will see a 50 basis points increase to 6.59%. A two year loan, on the other hand, will be increased by
40 basis points to 7.29%. The same is applicable to the three year rates, which will rise by 7.59%.

"Fixed interest rate loans are based on what the market expects'', said NAB spokeswoman Luisa Ford. "We have held off for as long as we can".

The sudden surge has been a direct result of the Reserve Bank's increase in cash rate by 25 basis point to 3.25% a month.