Simon Black The Daily Telegraph October 05, 2012
ANZ remains the only big four bank to hold out on rates, shunning drops by NAB, Westpac and Commonwealth banks.
NAB and Commonwealth bank today both failed to pass on the Reserve Bank's interest rates cut in full, making a reduction of only 0.20 per cent.
Westpac was the third bank to cut rates, dropping them by 18 basis points to 6.71 per cent, effective October 15.
NAB's cut will come into effect on October 8, saving $50 per month on an average $300,000 mortgage.
Commonwealth Bank's cut will come into effect on October 12.
On Tuesday, the RBA cut the cash rate by 25 basis points to 3.25 per cent.
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NAB's Group Executive for Personal Banking, Lisa Gray, said the bank had tried to offer the lowest rate of the major banks while ensuring the bank was safe and secure.
"The increased competition for deposits is pushing up costs, making it more expensive to fund our lending," Ms Gray said.
Yesterday ING Direct anounced it would pass on the rate cut in full, slicing its variable home loans by 0.25 per cent.
The Bank of Queensland has already reduced its variable home loans by 20 basis points.
ANZ has stated it would not reduce rates before its regular rates meeting on October 12.
All Westpac would say today was that their rates were under review.
The big four banks' standard variable home loan rates currently stand at:
- NAB 6.58
- CBA 6.60
- ANZ 6.80
- Westpac 6.71