National Australia Bank Ltd
(ASX:NAB) has come out and pledged not to exceed any interest rate rise handed down by the Reserve Bank today.
Experts are saying that the RBA could go either way today when it announces its interest rate decision at 2:30pm Sydney time.
NAB’s move challenges its rivals who have passed on hefty hikes to customers due to increased bank funding costs.
The bank’s rivals, Westpac and the Commonwealth Bank have both indicated in recent weeks that they are under pressure to lift rates over that of the RBA.
As the top banks vie for customers it is unlikely they will risk facing the public backlash that followed Westpac after it lifted rates by 45 basis points last December.
Following a fall in retail sales in February and weak building approvals many say the RBA is not likely to want to upset already wary customers.
However on the other hand a surge in prices of Australia’s largest commodity exports may encourage the RBA to lift rates.
NAB posted profit of close to $2.6 billion in the 12 months to September 30, 2009.
