National Interest Rates Fall Into Line
The Age
Saturday February 15, 1997
The National Australia Bank yesterday matched the interest rate pace-setter, the Commonwealth Bank, by cutting its standard variable home loan rate to 7.55 per cent.
The NAB also cut fixed rates on loans between one and five years by up to 0.25 per cent.
The bank's chief general manager, Mr Frank Cicutto, said it had experienced strong gains in home lending and the latest cuts would ensure continued growth in a highly competitive market.
Western Australia's biggest home loan provider, BankWest, also jumped on the bandwagon, lowering its rate to 7.55 per cent, while its BankWise rate - struck to encourage loyalty from longer-term customers - fell to 7.25 per cent, and the budget home loan rate to 6.95.
In its interim report on Tuesday, the Commonwealth started the trend when it announced a cut in its variable rate to 7.55, the lowest for 23 years. A New South Wales regional bank, Colonial, followed suit soon after.
The Commonwealth claimed a 75 per cent increase in home loan customer inquiries after its announcement last Wednesday.
The bank's general manager for personal banking, Mr Alf Long, said calls were from new home borrowers and customers of other banks seeking to refinance their home loans.
Of the four major banks, the ANZ and Westpac are yet to decide on rate cuts.
© 1997 The Age