 NAB refuse to pass on any rate cut
National Australia Bank is not passing on any of the Reserve Bank rate cut. The RBA announced on Tuesday official rates would be cut by 25 basis points, bringing the cash rate down to 3 per cent.
But NAB refuses to pass on any of the rate cut to home owners, instead keeping its standard
variable mortgage interest rate at 5.74 per cent.
NAB personal banking head Lisa
Gray cited the bank's rising cost of funding as preventing it from
passing on any of the Reserve Bank's 25 basis point cut.
"Whilst customer interest rates have been falling, the actual cost
of banks providing a mortgage has increased significantly since the
credit crisis hit in mid-2007," she said.
"Our pricing needs to responsibly reflect these increased funding costs."
AUSTRALIA'S four big banks have saved $1 billion by keeping the majority of the Reserve Bank's last rate cut to themselves.
NAB holds on to $240 million by keeping its standard variable rate on hold.
CBA has cut its standard variable mortgage rate by 10 basis points to 5.64 per cent, effective April 17, while both ANZ and Westpac also cut their home loan rate by just 10 basis points.
The Reserve Bank moved to cut official rates by 0.25% down to 3% on Tuesday, bringing the cash rate down to it's lowest level since 1960. So far no lender has passed on the full rate cut to home owners.
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