BoQ defends its 20bp rate cut

Bank of Queensland has passed on only 20 out of the 25 basis point rate cut announced by the RBA. The 20-basis-point rate cut brings BOQ's standard variable rate home loan to 6.71% p.a. effective from Friday, October 19, 2012.

“Given the continuing pressure on the cost of funding a 20 bps reduction is the best balance between our customers and shareholders,” CEO Stuart Grimshaw says.

“We are also conscious of pressure facing all of our customers, including those with home loans and those with deposits, and believe the 20 bps cut also strikes a fair balance between the two.”

Source: Property Observer