Bank of Queensland first to show its hand with 0.35% cut
The Bank of Queensland was the only lender to react yesterday to the Reserve Bank's rate cut decision.
It has announced it is cutting its standard variable rate by 35 of the 50 basis points in the cash rate reduction.
BOQ chief executive Stuart Grimshaw says continued economic uncertainty had influenced BOQ’s decision to hold back 15 basis points.
“Increased competition in retail term deposits continues to put upward pressure on the bank’s cost of funds,” he says.
“When making decisions on rates we consider the needs of our customers and those of our shareholders.
“It is a difficult balancing act, but we believe passing on a 35 basis point cut is the responsible course of action this month,” he says.
BOQ will cut its standard variable rate by 35 basis points as of 11 May 2012, bringing its standard variable rate home loan to 7.11%.
The bank also lifted mortgage rates by 10 basis points following the March bank decision by the RBA to leave the cash rate on hold, having been the first significant lender to pass on the full 25 basis points cut announced by the RBA in December.
