SYDNEY, Oct. 2 (Xinhua) -- Australia's Bank of Queensland (BOQ) announced on Tuesday it would reduce its standard variable home loan rate by 20 basis points to 6.71 percent following the central bank's 25 basis point cut to the cash rate.
It is the first bank to respond to the Reserve Bank's move, but has failed to pass on the full rate cut.
The Reserve Bank of Australia on Tuesday announced its decision to cut the cash by 0.25 percent to 3.25 percent.
"Given the continuing pressure on the cost of funding a 20 basis point reduction is the best balance between our customers and shareholders," BOQ Chief Executive Stuart Grimshaw said in a statement.
"We are also conscious of pressure facing all of our customers, including those with home loans and those with deposits, and believe the 20 basis point cut also strikes a fair balance between the two."
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