Bendigo Bank passes on full rate reduction

Following its regular pricing committee meeting, Bendigo Bank has announced it will decrease its variable home loan rate by 0.25% p.a. to 7.55% p.a.

Managing Director, Mike Hirst, said the decrease followed the Reserve Bank of Australia’s decision earlier in the week to lower the official cash rate by 0.25%.

“Bendigo Bank sets its pricing and fees based upon principles which promote fairness and equity for all stakeholders.

"Our Bank has considered the interests of borrowers, depositors, community partners and shareholders to reach a decision which is well-balanced and extremely competitive," Mr Hirst said.

"On balance, reducing home loan rates was the right thing to do now given the cost of living pressures borrowers face and our desire to help stimulate economic activity at a community level.

"But the fact is our funding costs have continued to rise, and today's rate reduction means our Bank will absorb those costs for now, although further deterioration in funding conditions may place upward pressure on lending rates going forward."

The new rate will apply from Monday, 28 November, 2011.