National Australia Bank now offers the best one-year fixed rate among Australia’s largest banks, after it slashed its fixed interest rates by as much as 0.15% on Tuesday.

Of the major four, NAB’s one-year fixed interest rate of 6.34% is the lowest rate, with Commonwealth second on 6.38%, followed by ANZ on 6.39% and Westpac on 6.49%.

The move to reduce fixed interest rates comes after the latest Reserve Bank of Australia figures revealed that NAB continued to grow its home lending above average market growth for the 20th month in a row.

NAB Executive General Manager of Consumer Product Solutions, John Salamito, said offering competitive fixed interest rates was part of NAB’s commitment to be competitive in the home lending market.

“NAB has offered the lowest standard variable interest rate amongst the major banks for more than two years, as well as continuing to offer competitive fixed rates,” Mr Salamito said.

“Our latest adjustments to fixed rates reflect current markets and our commitment to offering customers competitive rates.

NAB’s two-year and three-year fixed interest rates are both down 0.10% at 6.39% and 6.44%, respectively.