NAB has just announced that it will pass part of the RBA rate cut on to its customers.
The major lender is the first of the big banks to cut interest rates after the Reserve Bank of Australia’s decision yesterday to slash the cash rate by 50 basis points.
NAB’s standard variable home loan rate has been reduced by 32 basis points from 7.31 per cent to 6.99 per cent.
Federal Treasurer Wayne Swan said yesterday that consumers expected the banks to pass on a rate cut, but stopped short of saying it should be passed on in full.
“Their profits are robust, the RBA has observed that funding costs have come off in recent times, yes there has been some volatility in costs over time.
“But the fact is these banks are very, very profitable. I think they ought to pass through this 50 basis point cut in full.”
Lisa Gray, Group Executive NAB Personal Banking said the bank has its customers best interests at heart.
"Decisions on lending rates are not taken lightly, but we are determined to provide our customers with certainty through our commitment to stay the lowest of the major banks for the rest of 2012.
"Our lowest SVR commitment builds on our fair value philosophy, under which NAB has led the industry in taking action to save our customers money, such as abolishing some of the most-complained-about fees and reforming our credit card payment hierarchies," she said.