Bank of Queensland has increased rates, a month after vowing to stay on hold until at least the next RBA meeting.
Following the February meeting in which the Reserve Bank shocked economists by leaving the cash rate steady, BoQ resolved that it would leave its rates untouched until at least the Bank's March meeting. With the Reserve again leaving rates on hold yesterday, Bank of Queensland has belatedly followed other lenders in hiking its standard variable rate by 10bps.
BoQ chief executive Stuart Grimshaw claimed the bank "held rates for as long as it could", but was now forced to move.
"Competition is fierce for local deposits and to remain competitive BoQ needs to provide strong rate returns on our term deposits. 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," Grimshaw said.
The increase will be effective from 16 March, and will bring the bank's standard variable rate to 7.46%.
"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," Grimshaw said.
BoQ to hold steady ahead of ANZ announcement