Sunday, 19 October 2008
National Australia Bank announced today it would reduce its standard variable mortgage and business lending interest rates by 0.20% and some mortgage fixed rates by 0.30%.
Ahmed Fahour, Executive Director and CEO Australia, said NAB’s decision to cut interest rates would bring some welcome relief and support for many Australian families, small businesses and AgriBusiness customers during these economically turbulent times.
"Earlier this month we were able to pass on the majority of the Reserve Bank of Australia (RBA) cut to the official cash rate to our home loan customers and I am delighted we are in a position to pass on a further 0.20% decrease in variable rates to make a total 1.0% this month along with the cuts of up to 1.6% to NAB fixed interest rates," Mr Fahour said.
"While our current cost of funds remain at a historical high, policy measures announced by the Australian Government earlier this month have started to have a positive impact on the credit market.
"We welcome this new development and anticipate that we will see some relief in the significantly higher premium we are currently paying for wholesale funds. Should this be the case, then we hope to be in a position where we can pass on further interest rate cuts to our customers."
Mr Fahour said NAB would continue to monitor the situation and any future interest rate decisions would reflect an assessment of the total cost of funding.
"The volatility around the world is considerable and it may take some time to restore confidence in the global economy We have a strong market here in Australia and with NAB’s 150 year history, this should give consumers the confidence that we are able to withstand even the most challenging of times.
"We will do everything we can, while still acting responsibly, to help our customers get through these current challenges," Mr Fahour said.
NAB has also made changes to a range of other lending products including its variable Business Lending rates which will be reduced by a further 0.20%. This will bring welcome relief to both Business Banking and AgriBusiness customers. Many NAB business customers on bills linked products have already benefited with a 1.0% cut announced last week by the RBA.
NAB’s Fixed Rates are also being cut further, with the 1 Year Fixed Rates decreasing by 0.30% to 6.99% pa and the 3 Year Introductory Fixed Rate decreasing by 0.30% to 6.89% pa.
All of the rates announced today will be effective 27 October 2008.
Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104