Bank of Queensland passes on 20 out of RBA's 25 basis points

The Bank of Queensland (BOQ) is the first lender to move following today’s 25 basis point rate cut announced by the RBA. 

Just half an hour after the RBA decision, BOQ says will cut its standard variable rate by 20 basis points as of 16 June 2012, bringing its standard variable rate home loan to 6.91% p.a. 

The bank reported a statutory loss of $91m for first half 2012.

BOQ chief executive and managing director Stuart Grimshaw says continued global economic uncertainty had influenced BOQ’s decision to pass on 20 of the 25 basis points. 

“Volatility in overseas markets continues to push up the cost of funds and demand for deposits in Australia. 

“Competition for deposits is at an all time high, but the RBA is trying to encourage consumers to spend, so we’re pleased to assist by passing on a 20-basis-point cut today,” he says.

BOQ was also one of the first lenders to announce its rate decision following the May 1 RBA cash rate cut of 50 basis points - passing on 35 basis points to variable mortgage holders.

However, the bank lifted its standard variable mortgage rate by 0.1% in March, independently of the RBA, to cover the costs of higher funding.

It passed on both 25 basis point cash rate cuts in November and December in full.