First major announces interest rate cuts

by Mackenzie McCarty05 Dec 2012

National Australia Bank (NAB) is the first major to cut its interest rates, passing on 20 basis points of the central bank's 25 basis point cut.

NAB will reduce its standard variable home loan rate to 6.38% from December 10, from 6.58% before the cut, while rates on variable business loans will also be cut by 20 basis points.

The bank has promised to offer the lowest standard variable home loan rate of the big four banks until the end of 2012.

Commonwealth Bank and ANZ would now have to cut their rates by at least 23 basis points to offer a lower standard variable rate than NAB.



  • by Broker 5/12/2012 12:55:18 PM

    So NAB can promise to offer the lowest SVR ( which means zero anyway) and then cut only 0.20%...clearly they know that their lowest SVR position will be safe, once the rest follow suit. The result of collusion I suppose