NAB, CBA move, but not all the way

by Mackenzie McCarty03 May 2012

CBA has so far proved the most generous of the major banks in the latest round of standard variable rate cuts that have follwed the RBA's Tuesday cut.

The major bank said it would pass on 40 basis points of the 50 basis point RBA cash rate reduction, bringing its standard variable rate down to 7.01%.

Meanwhile, NAB cut its standard variable rate by 32 basis points to 6.99%, saying it remains committed to offering customers the lowest standard variable of the majors for the rest of 2012.

ING Direct followed NAB this morning, saying it would pass on 30 basis points to consumers from the end of next week, with the variable rate of its Mortgage Simplifier product dropping to 6.42%.

Banks have been under pressure to pass on as much of the RBA's move as possible to stimulate confidence. ANZ has said that it will not announce its decision until next Friday.

The Reserve Bank cut the cash rate by 50 basis points to 3.75% on Tuesday.