National Australia Bank holds mortgage rates steady after rivals hike
* NAB holding variable mortgage rate steady
* Rivals CBA, Westpac, ANZ all hiked already
* Other bank shares rose after hikes
(Adds CEO quote and background)
SYDNEY, Sept 10 (Reuters) - National Australia Bank
said on Monday it will not lift its variable mortgage rate as it
tries to win public support following revelations of misconduct,
and despite its three larger rivals hiking their own rates.
The move keeps NAB in line with the central bank, which has
held its official cash rate at a record low of 1.5 percent since
2016, while its competitors risk a political backlash by lifting
their loan rates out-of-cycle.
It also means NAB will bear the rising cost of wholesale
funding that its rivals blamed for their upward moves. The
company said its variable home loan interest rate would stay at
5.24 per cent, for now.
"We are listening and acting differently. We need to rebuild
the trust of our customers, and by holding our NAB standard
variable rate longer, we help our customers for longer," NAB
Chief Executive Andrew Thorburn said in a statement.
Australian banks are under immense pressure from revelations
of misconduct stemming from an ongoing public inquiry into the
NAB's wealth management unit was hit with a lawsuit from
Australia's corporate regulator last week, accusing it of
charging fees to hundreds of thousands of retirees for financial
advice they never received. The bank is assessing the
Commonwealth Bank of Australia, Westpac Banking
Corporation and Australia and New Zealand Banking Group
hiked their rates in the past two weeks.
The four banks control about 80 percent of Australia's
deposit and home loan markets, with most of those loans priced
in variable interest rates.
Their rate moves lifted bank shares while knocking the
Australian dollar lower as traders wagered the Reserve
Bank of Australia (RBA) might be forced to keep policy
stimulatory for longer in the face of a de-facto tightening in
Banking analysts had assumed NAB would follow suit. NAB
shares fell 0.6 percent in early trade, in line with other bank
stocks, as the broader market fell 0.3 percent.
(Reporting by Tom Westbrook; editing by Richard Pullin and
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