NAB may move before RBA: Clyne

NAB may move before RBA: Clyne

29 October 2009 by Staff Reporter 0 comments

NAB’s chief executive Cameron Clyne has refused to rule out more out-of-cycle rate rises, but has promised to keep the bank’s mortgages competitive.

Speaking at the bank’s full year results media briefing, Mr Clyne said the banking sector should move to an independent cost of funds benchmark because the official cash rate did not effectively represent the true cost of funds.

Earlier this week, ANZ chief executive Mike Smith said the bank would not deviate from the Reserve Bank’s rate cycle until it becomes clear that Australia has come out the other end of the GFC.

While Mr Clyne said he couldn’t make the same promises as ANZ, he did point to the fact that NAB’s average mortgage rate was 0.07 per cent lower than ANZ and vowed to remain competitive.

“If you’re a NAB customer you are paying $210 a year less than ANZ on the average mortgage. We will always be competitive and we will try and move competitively on interest rates.

NAB’s chief executive Cameron Clyne has refused to rule out more out-of-cycle rate rises, but has promised to keep the bank’s mortgages competitive.

Speaking at the bank’s full year results media briefing, Mr Clyne said the banking sector should move to an independent cost of funds benchmark because the official cash rate did not effectively represent the true cost of funds.

Earlier this week, ANZ chief executive Mike Smith said the bank would not deviate from the Reserve Bank’s rate cycle until it becomes clear that Australia has come out the other end of the GFC.

While Mr Clyne said he couldn’t make the same promises as ANZ, he did point to the fact that NAB’s average mortgage rate was 0.07 per cent lower than ANZ and vowed to remain competitive.

“If you’re a NAB customer you are paying $210 a year less than ANZ on the average mortgage. We will always be competitive and we will try and move competitively on interest rates.

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