BoQ issued a statement on their website.
Group Executive, People and Corporate Services, Daniel Musson, said the Bank was keen to do everything it could to offer customers some relief, despite the ongoing volatility in world markets.
"We value our customers and believe that by reducing our rates by 0.62% we are balancing the interests of our customers with that of our shareholders, given the very high wholesale and offshore funding costs we continue to face.”
Many lenders have also cut the interest rate to fixed rate home loans in response to a sharp decline in interest from home buyers for the product. Variable rate mortgages are fast becoming the more popular option for borrowers looking to make the most of falling interest rates.
Another official rate cut is predicted when the RBA meets in December. Home owners wait to see if the lenders will pass on the rate cut in full this time.