Bank of Queensland the first to pass on rate cut

Brisbane-based Bank of Queensland is the first significant lender to announce that it will pass on the full 25 basis points cut announced by the Reserve Bank earlier today.

The bank will cut its standard variable home loan by 25 basis points as of December 16, bringing its standard variable rate home loan to 7.36% per year. 

BOQ chef executive and managing director Stuart Grimshaw says with Christmas just weeks away, giving customers this additional relief just makes sense. 

“Passing on the full 25-basis-point cut was the right thing to do last month and it’s the right thing to do this month,” he says.

However, he hinted that passing on full rate cuts in the future may be a challenge. 

“Our cost of funds do continue to increase so pricing remains a balancing act of shareholder and customer interests, but with Christmas less than three weeks away, we know our customers will appreciate the extra dollars in their wallet as they head into Christmas celebrations and family holidays,” he says.