Movements in interest rates

Bendigo Bank today announced its response to the 0.25% p.a. increase in official interest rates.

Group Managing Director Rob Hunt said the increase would be passed on to a range of loans and savings accounts.

"We will take a balanced approach to our borrowers and depositors, just as we did during the series of rate reductions last year," Mr Hunt said.

"The increase announced by the Reserve Bank is modest and will add $16 per month to a $100,000 mortgage.

"But it will also improve the returns achieved by the many people in our community who rely on their savings to produce income."

Mr Hunt said the Bendigo would increase variable interest rates by 0.25% p.a. for home loans, business loans and credit cards effective from 1 June 2002.

From 1 June, the variable home loan rate will be 6.35% p.a.

The bank will also increase interest payable to a wide range of deposit account holders including the bank's popular Classic savings account.