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ISCOVER
Staff Reporter
National Australia Bank has become the first major to move on rates, almost 24 hours after the Reserve Bank announced it would trim 25 basis points from the cash rate.
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According to an announcement from the company, NAB will trim just 20 basis points from its standard variable rate, taking it to 6.38 per cent, effective from December 10.
NAB had vowed earlier this year to have the cheapest standard variable rate of all the majors – a title it has successfully held for more than three years now.
However, with NAB being the first major to move on rates in December, the bank now leaves the door wide open for the other majors to come in and undercut its pricing.
Speaking about NAB’s decision to pass on just 20 basis points of the 25 basis point rate cut, the lender’s group executive personal banking Lisa Gray said the decision was not taken lightly, as the bank had to “strike the right balance” between its own costs and offering a competitive lending rate.
“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,” she said.
“The impact of deposit and wholesale funding costs remain high, resulting from instability in the global economy and low confidence domestically.”
