News: Bank of Queensland passes on full rate cut

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Bank of Queensland Limited (ASX:BOQ) has decided to pass on the Reserve Bank of Australia’s (RBA) full rate cut to its variable rate home and business loan customers.

 

The Brisbane based regional lender made the announcement within half an hour of the RBA yesterday cutting its official cash rate by 25 basis points to a new record low of 2.25 per cent. 

 

Bank of Queensland will pass on the full rate cut this month to its Standard Variable Rate Home Loan, Clear Path variable loans and variable Business Term Loan customers.

 

CEO and Managing Director Jon Sutton says the latest rate cut should see a number of variable home loan products drop below 5 per cent and will bring the bank’s Clear Path variable home loan product to a very sharp 4.62 per cent. 

 

Bank of Queensland boosted its net profit by 40 per cent to $260.5 million in the 2014 financial year.