National Bank announced today that it will not change its Standard Variable home loan rate from 5.24% p.a.
In a statement released this morning, NAB CEO Andrew Thorburn announced that the bank was “listening and acting differently” and there was a “need to rebuild the trust of our customers.”
The decision is certainly aimed at strengthening the NAB brand and growing market share in an increasingly difficult and volatile lending environment. The economic cost will be reduced profit margins – a direct result of reduced net interest margins.
NAB home loan customers will therefore enjoy a reprieve from interest rate hikes… for now.