Interest Rate Cut – Bank of Queensland Shows its Hand

Within hours after the RBA cut interest rates by 0.25% the Bank of Queensland ( BOQ ) reduce their variable interest rate by 0.20%.

This could be an omen as this might be the trigger for the major banks not to pass on the full rate cut to its mortgage holders.

Research from the Herald Sun has found that over the last 12 months the Reserve Bank of Australia has cut interest rates by 1.5% and the major banks have only two thrids of this amount to its consumers. ANZ have passed on 1%, Commonwealth Bank – 1.01%, NAB – 0.89 and Westpac – 0.97%.

Smaller banks and other lender have not been that much different to the major banks. As always I will keep you up to date with how the banks will move on interest rates in the coming days.