NAB first of big four to cut rates after RBA decision
(06 December 2012 – Australia) The first of the major banks to break ranks and cut interest rates was National Australia Bank (NAB) – passing on 0.2 percent of the 0.25 percent cut to customers.
Blaming higher deposit rates and elevated wholesale funding costs, the bank made its decision to hold back 5 basis points of the Reserve Bank of Australia (RBA)’s cut.
NAB pledged to remain the lowest of the big four banks with its standard variable rate dropping to 6.38 percent.
Customers with an average A$300,000 home loan would save up to A$50 per month in interest.
Group executive personal banking Lisa Gray said the decision was not taken lightly but the bank had to strike the right balance between costs of funding and a competitive offering for customers.
'Our new rate is effective from December 10 and continues our delivery of our pledge to offer the lowest standard variable home loan rate of the major banks for 2012,'' she said.
'NAB has offered the lowest standard variable home loan rate of the major banks for 41 months and our track record of being competitive speaks for itself.''
NAB pledged to remain the lowest of the big four banks with its standard variable rate dropping to 6.38 percent.
Customers with an average A$300,000 home loan would save up to A$50 per month in interest.
Group executive personal banking Lisa Gray said the decision was not taken lightly but the bank had to strike the right balance between costs of funding and a competitive offering for customers.
'Our new rate is effective from December 10 and continues our delivery of our pledge to offer the lowest standard variable home loan rate of the major banks for 2012,'' she said.
'NAB has offered the lowest standard variable home loan rate of the major banks for 41 months and our track record of being competitive speaks for itself.''
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