National Australia Bank (NAB) chief Cameron Clyne says the bank will offer competitive interest rates, but cannot guarantee rates won’t be lifted above the RBA.
After a shocking year for NAB, that saw full year profits tumble by 42.9 percent, Clyne said they are committed to being competitive, and that they had no immediate plans to move outside the RBA, but could not make any guarantees.
“I think the commitment we give is that we will be competitive,” he said.
This comes after rival lender ANZ recently promised not to move interest rates above those set by the RBA.
In an interview with the Herald Sun newspaper, ANZ chief executive Mike Smith said the move to increase rates beyond the RBA’s expectations would not be justified in the current climate.
“I would be reluctant, frankly, to do anything until we really have to,” Smith said. “I’m concerned we’re in a quite fragile stage of recovery (and) I’m reluctant to move above the Reserve Bank, right now, because I can’t see how it would be in the best economic interests of Australia.”
The RBA board is expected to make a decision on official interest rates at the next board meeting on Tuesday 3 November.
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