Tuesday, 7 October 2008
National Australia Bank announced today it would reduce its standard variable interest rate by 0.80% to 8.56% per annum and cut its one year introductory fixed rate by 1.20% to 6.99% per annum.
Ahmed Fahour, Executive Director and CEO Australia, said while the market had been extremely volatile over recent weeks, NAB was focused on doing everything it could to help customers.
“While the decrease in the official cash rate by the Reserve Bank of Australia (RBA) does not reflect the significantly higher premium we have been paying for wholesale funding, I am pleased we are able to pass on the majority of the decrease to our home loan customers.
“Since passing on our last interest rate decrease in September, our average cost of funds has increased significantly. Specifically, we have absorbed about half of the actual cost of funds increase, which is being driven by higher short and long term funding.
“We will continue to monitor wholesale funding markets and any future interest rate decisions will reflect an assessment of the total cost of funding. Above all else, it is our priority to maintain a healthy banking system here in Australia while balancing the needs of our shareholders and our customers,” Mr Fahour said.
NAB’s one year introductory fixed rate will be effective Friday, 10 October and the new standard variable home loan rate will be effective from Monday, 20 October.
Luisa Ford NAB Corporate Affairs M: +61 (0) 411 024 104
* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges