Bank cites need to balance customer interests and market rates
BOQ Specialist, a subsidiary of the Bank of Queensland, announced it would not pass on the Reserve Bank of Australia's (RBA) decision to cut the cash rate by 0.25%.
“BOQ Specialist variable home loan interest rates for new and existing loans will remain unchanged following the RBA’s February 2025 cash rate change,” the bank, which is headed by chief executive Patrick Allaway (pictured) announced on its website.
“BOQ Specialist regularly reviews savings and home loans rates to ensure they balance the needs of savers and borrowers and are competitive in the market,” it added.
This stance has been met with dissatisfaction from some customers, who feel they are being unfairly treated. One customer expressed their disappointment, saying: "Having finally got a reprieve from this never-ending high-interest cycle, it was soul-destroying to find out my bank was not intending to pass any of it on.”
BOQ Specialist’s decision mirrors Virgin Money’s decision to no cut interest rates for home loans, a move which was criticised by Labor Treasurer Jim Chalmers.
"Banks and other lenders shouldn’t treat their customers like mugs," he said. "The best thing you can do if your lender refuses to pass on this rate cut is to shop around for a better deal".
Meanwhile, many major banks like Commonwealth Bank, ANZ, NAB, and Westpac have implemented the full rate reduction.
