NAB takes edge off fixed rates
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25/06/2010 8:00:00 AM
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National Australia Bank (NAB) has joined rival lender BankWest in dropping rates on fixed products this week, despite expectations of impending rate rises this year.
The bank knocked 0.2% off both its standard fixed rate and packaged three-year fixed rate products, bringing pricing down to 7.49% and 7.39% respectively.
A NAB spokesperson said the move reflected a drop in the three-year interbank swap rate since May, which banks use as a starting point when setting their fixed lending rates.
The reduction in rates came despite continued uncertainty in interbank swap rates, which have continued to experience volatility due to funding woes in Europe.
The spokesperson said demand for fixed rate products from the bank had increased “slightly” since February, though this remained substantially lower than the first half of 2009.
BankWest dropped interest rates on two fixed interest products earlier this week, in a move designed to make the lender more competitive with the Big Four.
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BankWest lowers fixed rates
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