Bendigo Bank has also cut its variable home loan rate, following other banks earlier this week. Bendigo's rate will fall to 7.80 per cnet, down by 0.60 per cent. The new rate is effective as of November 13. The rate cut also applies to home loans written through the Adelaide Bank branch network.
Chief Executive of the Bendigo and Adelaide Bank Retail Bank, Mike Hirst, said the Bendigo Bank strived to provide competitive rates, products and services to its customers.
“We continue to monitor our pricing closely, to ensure it remains fair and reasonable for all our stakeholders,’’ he said.
Mr Hirst said customers would be informed of the changes by letter.
Calls for the banks to pass on the full RBA rate cut of 75 basis points continue, and many believe the higher than expected official rate cut was made to factor this in. Most analysts were predicting a cut of 50 basis points, but Federal Finance Minister Lindsay Tanner said the RBA would have been aware that the banks were unlikely to pass on the cut in full.
“I suspect the Reserve Bank in making the decision did so on the assumption that not all of what it was doing would be passed on, and factored that into its decision,’’ Mr Tanner told Fairfax Radio.”
On Tuesday, the central bank cut official interest rates by 75 basis points, bringing the official cash rate down to 5.25 per cent. It was the third consecutive rate cut, with a total cut of 2 per cent since September.
Following the announcement, all major banks - Commonwealth, ANZ, NAB, Westpac and St George - all lowered variable home loan rates by between 58 and 65 basis points.
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