NAB passes on full RBA interest rate cut

ANOTHER of the Big Four banks has announced it will pass on the full 25 basis points cut on its interest rates. Who’s the holdout?

NAB has passed on RBA’s cuts.

NAB has followed the lead of Commonwealth Bank and Westpac in reducing its standard variable home loan rate, passing on the full 25 basis points cut made by the Reserve Bank on Tuesday.

NAB’s standard variable home loan rate is now 5.63 per cent, a figure NAB said is its lowest standard variable rate in nearly 40 years.

NAB group executive personal banking said the average NAB customer with a standard variable home loan will save $62.50 a month. The new rate will be effective from February 20.

NAB’s move means ANZ is now the only Big Four bank to have not announced its intentions. The bank said it will make a decision by tomorrow.

When the RBA announced it would lower the official cash rate to a historic low of 2.25 per cent, the first lenders to pass on the cut were smaller outfits ME Bank, ING Direct and Bank of Queensland. Since then, Maitland Mutual, Newcastle Permanent and Greater Building Society have all cut their standard variable rate.

Subsidiaries of the Big Four banks that have announced their rate cuts — St George, BankWest and Bank of Melbourne — will also pass on the 25 basis points reduction.

Treasurer Joe Hockey has urged lenders to pass on the interest rate cuts to all customers including those with home loans, business loans and credit cards.

Originally published as NAB passes on full RBA interest rate cut