SYDNEY, May 3 (Reuters) - National Australia Bank on Tuesday said it will cut variable home loan rates by 25 basis points following the central bank’s move to lower the cash rate by a quarter point to an all-time low of 1.75 percent.
The cut, effective May 16, will pull NAB’s variable home loan rate down to 5.35 percent, it said. The nation’s No.1 lender will also reduce its variable business lending rates by 0.25 percent.
Australian banks raised a record A$20 billion ($15.13 billion) in equity last year to meet stricter capital rules and passed on the costs by raising lending rates to protect margins and shareholder returns. ($1 = 1.3221 Australian dollars) (Reporting by Swati Pandey; Editing by Stephen Coates)