"NAB breaks rank in rates cut stand-off "

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Thought I'd share this:

NATIONAL Australia Bank (NAB) has cut its variable home loan rates by 0.32 per cent, less than the central bank's rate cut.   

NAB said it would reduce its standard variable rate on mortgages and business loans, effective from May 4.
The interest rate on NAB's online savings account iSaver will also drop by 0.5 per cent to 5.0 per cent.

NAB's consumer credit card interest rates will drop by 0.25 per cent.

The Reserve Bank of Australia (RBA) cut the cash rate by 0.5 per cent yesterday.

NAB said the cuts would save its standard variable home loan customers $80 per month in interest on the average $300,000 mortgage.

Its new standard variable mortgage rate will be 6.99 per cent, the lowest offered by the big four banks.

"We will continue to offer a fair exchange of value, balancing rising funding costs, the needs of our existing customers and our ability to continue lending to home owners and businesses," NAB group executive of personal banking Lisa Gray said in a statement.

ANZ said today it would make its decision on rates at its regular pricing meeting on the second Friday of the month.

Westpac and Commonwealth are yet to announce any rate movements.

Bank of Queensland cut its standard variable rate by 0.35 per cent yesterday.

Ratecity.com.au CEO Damian Smith says he's surprised NAB announced their rate cut before ANZ's review meeting on May 11.

"NAB has set the benchmark for the other major banks to hold onto some of the Reserve Bank's 50 basis point rate cut," he said.

"For a typical $300,000 mortgage, this will be a saving of about $65 per month."

This information was gathered from:
http://www.news.com.au/money/interest-rates/nab-cuts-rates-by-less-than-rba/story-e6frfmn0-1226344985868

DEB BRADY
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