National Australia Bank has trimmed its variable mortgage rate, but by less than the RBA and other banks, sparking a furious reaction from the Treasurer.

NAB today said it would trim its standard variable lending rate by 20 basis points to 7.47 per cent, effective from Monday, November 7.

The move fell short of its rivals' offerings. ANZ Bank this morning joined Westpac and Commonwealth Bank in passing along in full yesterday's Reserve Bank interest rate cut to customers.

Treasurer Wayne Swan slammed NAB’s decision, saying it was driven by greed rather than higher funding costs. ‘‘It’s a kick in the guts to working families. It’s a greedy decision from the NAB and it is not justified in my view by fundamentals,’’ Mr Swan told journalists in Canberra.

‘‘The NAB abolished all exit fees on their mortgage loans in response to initiatives from this government, so NAB customers have the choice to walk down the road and get a better deal.’’ Although NAB still has the lowest mortgage rates among the major banks, Mr Swan said many other institutions, such as mutuals, were offering cheaper rates.

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