National Australia Bank Limited
(ASX:NAB) says it will cut deposit rates by 0.25 percentage points.
The news follows its refusal to pass on the full 25 percentage point interest rate cut made by the Reserve Bank of Australia last week.
The move which has also been recently adopted by Commonwealth Bank of Australia
(ASX:CBA) and Australia and New Zealand Banking Group
(ASX:ANZ), has sparked concerns about a lack of competitiveness in the financial sector.
A spokesperson for NAB says the deposit rates cuts were due to an increase in funding costs.
National Australia Bank achieved net profit of $4.1 billion in fiscal 2012.
