The Australian Financial Review 13 Mar 2012
Bank of Queensland has increased its home loan interest rates, despite the Reserve Bank of Australia’s decision to keep official rates unchanged.
The regional leader increased its standard variable home loan rate by 0.10 percentage points this afternoon to 7.46 per cent.
Earlier, the RBA left the cash rate steady at 4.25 per cent for the second month in a row.
The move by BoQ will re-ignite the fierce debate about whether banks should increase interest rates outside of RBA moves.
BoQ was one of the few lenders not to raise rates independently of the RBA last month, despite hikes by all of its big bank rivals.
The bank’s managing director, Stuart Grimshaw, said the increase was necessary to cover a rise in funding costs.
“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,” he said.
“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.”
The Australian Financial Review