Banks say thanks RBA on rates

Two of the five largest providers of mortgage finance in Australia announced interest rate reductions late yesterday that were substantially less than the 50 basis point cut in the Reserve Bank of Australia's cash rate announced on Tuesday.

National Australia Bank cut its variable home-loan rate by 32 basis points to 6.99 per cent, which is effective from tomorrow. The same cut will apply to loans funded through NAB's Homeside arm for mortgage managers and to variable-rate small business loans.

ING Direct cut its variable home-loan rates on a range of products by 30 bps, effective from May 11.

Bank of Queensland cut is variable-rate home loan by 35 bps on Tuesday.

NAB cut the interest rate on its Flybuys co-branded credit card by 50 bps. It said it will cut rates on other credit cards by 25 bps.

NAB will also cut the interest rate on its at-call iSaver deposit by 50 bps, to 3.65 per cent.