Bank of Queensland lifts rates by 10 basis points to 7.46%

The Bank of Queensland (BOQ) has lifted mortgage rates by 10 basis points following yesterday’s decision by the RBA to leave the cash rate unchanged at 4.25%.

The increase, which will be effective from March 16, lifts BOQ’s standard variable home loan rate to 7.46% per annum, on par with the Westpac, and among the highest rate currently on offer in the market. 

The regional bank was one of the few lenders not raise interest rates in February, pledging to keep them unchanged until at least the March decision by the RBA.

Stuart Grimshaw, CEO and managing director of BOQ, says the bank had “held rates for as long as it could in the interest of customers” but that the increase was “necessary”.

"Competition is fierce for local deposits, and to remain competitive BOQ needs to provide strong rate returns on our term deposits. 

"BOQ has covered the higher cost of funding for a number of months to provide our lending customers with certainty, and it is disappointing that we’re unable to continue on that course. 

"This decision has not been made lightly and as always, we will be doing our best to support our customers in whatever way we can," he says. 

In February following the surprise decision by the RBA to leave rates on hold, Grimshaw said BOQ would hold rates steady until the next RBA meeting. 

“We understand many home owners and small business owners are concerned about out of cycle interest rates and want to take this opportunity to reassure our customers that we won’t be increasing our standard variable interest rates at this stage,” Grimshaw said at the time. 

“We want to continue to build long-term relationships with our customers.  Our focus remains on our customers – not on what our competitors are doing. 

“So, BOQ customers, rest easy.  We’re on your side and trying to do the right thing for you,” he said last month. 

ANZ currently has a standard variable rate of 7.36%, Commonwealth Bank's is at 7.41%, and NAB is at 7.31%.