Earlier today the Reserve Bank of Australia announced a cut in the official cash rate of 0.25 to 0.75 per cent.
Bank Australia is currently assessing the RBAs decision to ensure that the impacts on borrowers and depositors are thoroughly considered and represent a responsible approach to banking.
As a customer owned bank, we will always do our best to offer competitive rates to all customers whether they’re borrowers or depositors.
We will make a further announcement when we have an answer for you.
A note from our Managing Director on interest rates
Interest rates are falling in Australia and in many countries across the globe in a bid to stimulate economies and create employment.
Reductions in interest rates impact the income of all Australians who save and invest in cash deposited with banks, credit unions and building societies, whilst benefiting people with variable rate loans.
So what comes at a cost for depositors is a saving for borrowers.
And whilst interest rates fall the margin between the interest we charge on loans and the interest we pay customers for their deposits declines, which then impacts the bank’s revenue.
This margin has been falling over the past decade and it’s our expectation that it will continue to fall as interest rates remain at record lows.
Of course making sufficient revenue is essential to providing the services customers expect, running our operations, and meeting our regulator’s capital requirements that ensure your bank remains strong.
Despite the market conditions, we want you to know we will always act responsibly and equitably, making sure our interest rates remain competitively priced whilst we strike the right balance between the needs of customers who save and those who borrow.