National Australia Bank has passed on the RBA’s 25 basis point cut in the official cash rate to its home loan customers.
The NAB said its standard variable rate would reduce from 5.60% p.a. to 5.35%.
With profit margin pressures mounting on Australian banks, there was speculation that the major institutions may find it difficult to pass on any rate cut in full to customers.
“The circumstances of each decision will always vary and we must take into account factors such as competition, regulatory capital requirements and funding costs,” said NAB group executive personal banking Gavin Slater.
“Today’s decision balances the needs of our home loan customers with our shareholders.”
It means a $47 saving on the average monthly home loan repayment, based on a $300,000 loan over a 30-year term.