Two of big four pass on the cut
(12 December 2011 – Australia) ANZ was the first of the big four Australian banks to pass on the full 25 basis point rate cut by the Reserve Bank of Australia (RBA) with National Australia Bank (NAB) following shortly after.
ANZ’s announcement came after two days of deliberation, with both banks saying they had to weigh concerns of their customers and the community with rising costs of funds.
NAB personal banking head Lisa Gray said: "While we continue to be concerned about uncertainty in Europe and the impact on increased funding costs, our view is that it is important to put money back in the hands of our customers and assist with supporting the Australian economy this Christmas.'
Both ANZ and NAB have matched the full rate cut, with both taking effect on 16 December. NAB will lower its standard variable rate to 7.22 percent from its current 7.47 percent and ANZ will reduce its rate to 7.30 percent.
The bank's reduction will now put pressure on rival banks to follow suit, including the two largest lenders, the Commonwealth Bank and Westpac.
It also put the National Australia Bank in the firing line. Many in the banking industry believe the Melbourne-based NAB had been considering a smaller cut than the RBA because of the funding pressures on its bottom line.
NAB personal banking head Lisa Gray said: "While we continue to be concerned about uncertainty in Europe and the impact on increased funding costs, our view is that it is important to put money back in the hands of our customers and assist with supporting the Australian economy this Christmas.'
Both ANZ and NAB have matched the full rate cut, with both taking effect on 16 December. NAB will lower its standard variable rate to 7.22 percent from its current 7.47 percent and ANZ will reduce its rate to 7.30 percent.
The bank's reduction will now put pressure on rival banks to follow suit, including the two largest lenders, the Commonwealth Bank and Westpac.
It also put the National Australia Bank in the firing line. Many in the banking industry believe the Melbourne-based NAB had been considering a smaller cut than the RBA because of the funding pressures on its bottom line.
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