01 November 2012 7:04am

There wasn't much talk from National Australia Bank's chief executive, Cameron Clyne, about the bank's price leadership in the mortgage market yesterday. While the bank still holds the edge over its Big Four rivals, it has allowed its pricing advantage to be eroded over the past year, and its standard variable mortgage rate is now only two basis points cheaper than a couple of its rivals.

The bank has been keen to restore its interest margin in the face of funding cost pressures. Its price war has proved to be unsustainable and it would appear that retail customers are bearing the...