'Good news' welcomed
GYMPIE'S Bank of Queensland owner-manager Jellina White was happy to pass on Queensland Day good news for borrowers.
Her loan customers were among the first to see real hip-pocket benefits from lower cash rates announced by the Reserve Bank of Australia.
BOQ was the first banking organisation in Australia to respond to the RBA 25 basis point cut, bringing the cash rate to 3.5%.
Ms White said this would bring the standard variable home loan rate down to 6.91%, from tomorrow week.
Farmers and the Federal Government wanted more, while many retirees on interest incomes wanted less than the RBA cut.
Gympie businesses generally welcomed the news yesterday.
Gympie Chamber of Commerce president Ben Ellingsen said he hoped extra cash in consumer pockets would bring quick benefits to retailers.
But national reaction to the RBA cuts shows banks will be criticised, no matter what they do.
Farmers said it was not enough, retirees said it was too much.
And the Federal Government called for the full benefit of RBA interest rate cuts to be passed to consumers.
Although no announcement had been made by the "big four" major banks (ANZ, Commonwealth, National Australia and Westpac) late yesterday, the Gympie business community was hoping for the best.
"Gympie region retailers are the ones we've all got our minds on at the moment," Gympie Chamber of Commerce president Ben Ellingsen said.
"Any benefits passed on to consumers will hopefully be passed on in spending.
"Like most Queenslanders, businesses would certainly welcome the cuts."
Ms White said the rate cut would be good news for her customers.
"We're very happy to have been able to pass the reduction on without delay. This is not the first time BOQ has responded first to RBA decisions."
On the subject of interest paid by the bank to its savings and investment account customers, Ms White said: "A decision hasn't been made yet."
She said the bank had responded quickly "because we want to provide a level of continuity and certainty" for our customers.
"The RBA us trying to encourage consumers to spend and we're pleased to assist," she said.