NAB defends itself for refusing to budge on RBA rates

Tuesday 07 April 2009

Article by Mozo

National Australia Bank has claimed that it has done more than the other Australian banks in bringing home loan interest rates down in line with the Reserve Bank of Australia’s (RBA’s) target.

The bank said that it had shaved 400 basis points off its home loans since the RBA’s rate cutting RBA’s rate cutting flurry began in September and claimed it has no more room left to manoeuvre.

NAB’s head of head of personal banking Lisa Gray commented: "While 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 that the bank’s home loan interest rates needed to reflect this.

The decision will mean that NAB customers on variable rates will not see their home loan payments drop this month, while many other customers are still waiting to see what their home loan provider will decide to do.

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