National Lowers Variable Home Loan Rate - 7 February 2001

Wednesday, 7 February 2001

National Australia Bank will lower its standard variable home loan rate by 0.50% from Monday, 12 February 2001, following today's decision by the Reserve Bank to reduce the official cash rate.

The move sees the National's variable rate fall from 8.06% to 7.56%, and is great news for those thinking about home ownership for the first time or those looking to upgrade their existing home.

"Today's decision by the Reserve Bank to lower the official cash rate is the first downward move in more than two years," said Mike Pratt, the National's Chief Executive Officer - Australian Financial Services.

"On a $100,000 mortgage with a term of 25 years, this interest rate cut provides our customers with a significant saving of $33 per month," he said.

Borrowers can look forward to further rate cuts this year as official interest rates are expected to trend even lower said Alan Oster, the National's Chief Economist.

"We're forecasting a total cut of around 1% in the official cash rate by the Reserve Bank by the end of September.

"With the domestic economy slowing, inflation remaining low, and increasing concerns about global growth prospects, especially in the US and Asia, an easing of monetary policy of this magnitude would significantly lower the prospects of a hard landing.

"Indeed financial markets are factoring in even larger falls in interest rates," Mr Oster said.

Contact Details:

Brandon Phillips
Corporate Relations
03 8641 3857
0419 369 058

Alan Oster
Chief Economist
03 8641 3464
0414 444 652

Majella Allen
Corporate Relations
03 8641 0936
0410 440 305

* 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