Mr Liddy said that there should be more movement from the banks on standard variable home loan rates within the next week.
He said he expected wholesale funding markets to remain expensive and banks would "continue to pass on part of the additional funding costs".
During his analyst presentation, Mr Liddy said "the short-term end (of wholesale funding) is increasing", with the bank's short-term wholesale funding rising from 11 per cent to 14 per cent of its funding mix.
This came with a warning that present conditions would remain for at least 18 months -- "2009 will still be a difficult year". About $300 million in loans are set to mature by July.
BoQ plans to reduce its reliance on wholesale funding by redirecting resources to build a larger retail deposit book, even if this results in slowing the growth of its loan book.