Adelaide raises more rates

Adelaide Bank yesterday increased more mortgage interest rates, this time on the bank's prime mortgage loans.

The bank cut the discount available to mortgage managers on larger loans by between 10 and 15 basis points. The bank also increased interest rates on loans marketed through brokers by between 10 and 15 basis points. Adelaide also simplified its fixed interest rates. These rate rises are effective from today.

Adelaide lifted interest rates by around 30 basis points across its portfolio of low documentation loans effective from last Monday, a decision taken a couple of weeks ago.

So far most banks have absorbed the drastic rise in the cost of funds connected to the surge in money market rates in recent weeks, with most interest rate rises confined to lenders funded largely in the debt capital market.