Variable lending interest rates to increase

Bendigo Bank today announced an increase of 15 basis points in interest rates applying to its variable home, residential investment, home equity and business loans.

The interest rate for Bendigo Bank’s new and existing standard variable home loans will be 8.75% effective from next Thursday (17 January).

At same time, Adelaide Bank’s standard retail home loan rate will move to 8.75% p.a. to bring it into line with Bendigo Bank, Adelaide Bank’s new merger partner.

Chief Executive of Retail Banking, Mike Hirst, said that like other banks, Bendigo had experienced an increase in funding costs over the past six months.

He said Bendigo would continue to absorb some of the funding cost increases, but was unable to continue to absorb it all.

“However, we do expect some improvement in wholesale funding costs as the market eases, so we have held the rate increase below the actual impact on the bank.”

Mr Hirst said the bank continued to monitor funding costs and interest rates.

“We always endeavour to strike a balance in pricing that is fair and offers good value to depositors and borrowers, while enabling the company to provide its shareholders with a reasonable and fair return on their investment.”