NAB cuts rates4431 people have read this article
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| Thursday, 08 December 2011 | |||
NAB has retained its price advantage in the cutthroat mortgage market announcing a rate cut late this afternoon. Just hours after ANZ announced it would pass on the full 25 basis point rate cut to their borrowers, NAB has followed suit. NAB was widely criticised last month when it was the only major not to pass on the RBA's full rate cut. Effective from December 16, NAB's new standard variable rate will sit at 7.22 per cent – currently the cheapest of the majors. ANZ is at 7.30 per cent, CBA at 7.56 per cent while Westpac sits at 7.61. NAB's decision now puts increasing pressure on CBA and Westpac – both of which are yet to move.
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Comments
The delay this time was due to cat and mouse tactics. You can bet they were seriously considering a cut below 25 points. They were waiting to see if one of the other banks had the guts to announce a 15 or 20 point cut first. Let them take a drubbing, then fall in behind them.
As it happens ANZ announced 25 points and everyone will have to follow unless they are really hurting on margin.
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