BOQ Passes on Full Rate cut
Following today’s Reserve Bank of Australia (RBA) board meeting, BOQ will pass on the full 25 basis point rate cut this month to its Standard Variable Rate Home Loan customers.
CEO Stuart Grimshaw said that funding costs in the wholesale market had eased, which helped BOQ pass on the rate cut in full.
“Regional banks have not benefited from easing funding costs to anywhere near the same extent as the major banks due to a range of factors, particularly different wholesale funding mixes,” Mr Grimshaw said.
“But we’re working hard to offer competitive products that cater for our diverse customer base and deliver real everyday savings so we’re happy to pass on the cut in full.
“At BOQ we rely heavily on the retail market for funding and competition for consumer deposits remains.
“This makes it a great time for savers and we’re proud to continue offering very competitive deposit rates,” he said.
Over the last 12 months BOQ has consistently made its rates announcement the same day as the RBA board meeting.
“I think banks need to improve their transparency and this is just one way we can help provide some certainty to our customers,” he said.
The 25 bps rate cut brings BOQ’s standard variable rate home loan to 6.26% p.a. effective 24 May 2013.