(2 February 2010 – Australia) After the shocking rate rise made by Westpac at the end of last year, the bank is believed to be considering its approach to the impending rate rise with more grace this time around.At discussions held at several pricing committee meetings, ahead of the RBA’s next decision, the bank is understood to have decided on a ‘middle of the road’ approach, reported BusinessDay.
The bank was subject to intense scrutiny by the public and political figures after the bank made the decision in December to raise rates 20 basis points above the RBA’s official decision of 0.25 percent.
The bank claimed the decision was made due to increased wholesale funding pressures and even released a movie in which bananas and banana smoothies were used to ‘simplify’ the reasoning for consumers.
National Australia Bank’s head of retail, Lisa Gray, told Business Day that it will not increase interest rates above any RBA decision. Nab was the only bank to move in line with the RBA’s December decision.