NAB makes the first move on home loan rates
National Australia Bank (NAB) has set the ball rolling by slashing its home loan rates.
The country's major banks are facing intense pressure to lower their rates after the Reserve Bank of Australia (RBA) announced that it was dropping the official cash rate by 50 points.
This surprised most economists, as the majority had only been expecting a 25-point readjustment.
Bosses at NAB have confirmed the bank – which is one of the nation's "big four" – has reduced the rates attached to its mortgages by 0.32 per cent.
Its standard variable home loan rate now stands at 6.99 per cent p.a. which it says is the lowest of all the leading 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," commented group executive of NAB personal banking Lisa Gray.
The rest of the big four – Westpac, Commonwealth Bank and ANZ - are now under pressure to lower their rates too.
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