Repeated attacks from the Federal Treasurer Wayne Swan seem to have struck a chord with at least one of the major banks, with National Australia Bank announcing a future rate cut. The Treasurer has been putting pressure on the big banks for some time, saying that the major banks should pass on any official interest rate cut announced by the Reserve Bank to their customers.
All of the major banks had been quiet on the issue, refusing to commit to any kind of rate cuts. However, this week NAB became the first bank to promise to cut their variable rate home loans if the RBA cuts rates next month
"Certainly, it's a victory for National Australia Bank customers who have been doing it tough after eight interest rate rises in three years," Mr Swan told reporters in Brisbane.
"This decision by the National Australia Bank is a challenge for other banks to follow."
NAB said it would cut its standard variable rate to 9.36 per cent from 9.61 per cent next month, matching an expected quarter of a percentage point cut by the Reserve Bank of Australia (RBA).
NAB's chief executive was clearly pleased to make the announcement, but stressed that increases in the cost of funding the loans kept the bank from making any further rate cut promises.
The RBA is tipped to make an official rate cut when it meets next month, dropping the rate from 7.25 per cent down to at least 7.0 per cent.
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