NAB is the second major bank to drop its variable rate in the last few days following ANZ's Friday 0.25 per cent rate cut.
Yesterday NAB announced that its standard variable interest rate would be cut by 0.20 per cent – the reduction will be effective next Monday 27 October as with ANZ.
NAB executive director and CEO Ahmed Fahour said that while funding costs remained at an historical high “policy measures announced by the Australian government earlier this month have started to have a positive impact on the credit market”.
While ANZ chief Brian Hartzer said passing on further interest rate cuts “may take some time” NAB indicated that further reductions could come soon.
“We welcome this development and anticipate that we will see some relief in the significantly higher premium we are currently paying for wholesale funds. Should this be the case, then we hope to be in a position where we can pass on further interest rate cuts to our customers,” Mr Fahour said.
ANZ’s SVR now stands the lowest of the major banks at 8.32 per cent, followed by NAB at 8.36, CBA at 8.53, Westpac at 8.56 and St George at 8.57 per cent.
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