MEB last to lift

Members Equity Bank yesterday said it will lift variable rate home loans by 20 basis points across its home loan portfolio from February 5.

The bank, owned by several dozen industry superannuation funds, has held out longer than any other lender in deferring a rise in variable rates to reflect the elevated cost of funds, thanks to the six-month-old shock to financial markets from the US sub-prime meltdown.

MEB said it would raise rates by a further level consistent with any additional rise in the RBA cash rate target next week (with the central bank's board meeting and policy rate announcement due next Tuesday).