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More banks move on RBA rate cut

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More banks move on RBA rate cut

Suncorp Bank branch

Following Tuesday’s interest rate cut by the Reserve Bank, a number of other prominent lenders have announced their intentions — including for business loan rates.

In the hours after the RBA’s announcement, all four major banks announced they would be cutting interest rates — only two of which said they would pass on the full 25 basis point cut.

One of those was Westpac, which made the somewhat unusual step of making different rate cuts for owner-occupier and investor loans.

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In the days that followed, other lenders followed suit in announcing reductions in their mortgage interest rates.

ING and Macquarie both announced that they would pass on the full cut for their customers.

The savings will take effect on Macquarie Bank’s loans from Friday, 21 June. ING, meanwhile, will not deliver the saving until Tuesday, 25 June.

Newcastle Permanent also announced that it would pass on the full rate cut on all its variable loans, including business loans, from Monday 17 June.

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Bad news for other borrowers, but good news for businesses

Other lenders revealed that not all customers would enjoy the full savings.

Suncorp Bank will only reduce mortgage rates by 20 basis points, effective from 21 June. However, its business customers will receive the full cut, it said.

“Supporting small businesses across the country is one of the most important things we do because when local businesses succeed, local communities thrive,” said Suncorp’s head of banking and wealth, David Carter.

Meanwhile, Greater Bank would pass on the full cut on its variable loans, including business loans, from next Tuesday, 11 June, but its announcement comes just weeks after it hiked rates on these same loans by 10 basis points, the publication said.

It added that Virgin Money will cut rates by 22 basis points, while Bank of Queensland (BOQ) will pass on the full cut to all but one of its loans, with the Clear Path OO P&A loan to fall by a smaller 15 basis points. Both lenders said the changes will take effect from Tuesday, 25 June.

Correction: This story originally contained an error, stating that Newcastle Permanent would be cutting rates by 17 basis points. In fact, the lender is passing on the full rate cut, effective from 17 June.

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