Bank of Queensland is the latest bank to cut home loan interest rates. BoQ has cut their standard variable rate by 10 basis points. The new standard variable rate on home loans would drop to 5.89 per cent from April 24.
BoQ's group executive of People and Corporate Services, Daniel Musson, pointed to the need to balance the interests of its customers with those of shareholders.
“We value our customers and believe that by reducing our rates by 0.10 per cent 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,” he said.
On Tuesday the Reserve Bank cut official interest rates by 0.25% bringing the cash rate down to 3 per cent, the lowest level since 1960.
Other banks to cut rates by just 0.1 per cent are the Commonwealth, who was first to announce on Tuesday. Then ANZ, St George and Westpac also cut rates by 0.1 per cent. NAB has not cut their home loan rates.
The RBA had cut rates every month since September, but in March decided to leave rates on hold. Following today's April meeting the bank decided to lower the cash rate from 3.25 per cent down to 3 per cent, a 49-year low.
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