HUNTER lender Greater Bank will not pass on the full brunt of the Reserve Bank's latest rate increase, lifting its base rates by 45 points instead of the "full" 50 point rise delivered by the central bank.
On Tuesday, the Reserve lifted the official cash rate by 50 points to 2.35%, the fifth rate rise in as many months.
In what it said is a "customer-first philosophy", the Greater said that the variable base rates for Great Rate, Ultimate and Standard Variable, all line of credits and its business loans will only receive a 45-point increase.
Greater Bank will also increase rates for a range of deposit accounts: its three-month term deposit rate will increase to 1.60%p.a. and depositors willing to invest for longer terms can earn up to 4.00% p.a. Life Saver account holders will receive a 50-point increase to 1.50%.
The rate changes are effective from September 14.
The Newcastle Permanent on Tuesday placed its deposit and lending rates under review following the RBA announcement.
Greater Bank CEO Scott Morgan said that as a customer-owned bank, "we operate to assist our borrowers pay off their housing loan sooner. This customer-first philosophy is paramount when making decisions around any interest rate changes."
Mr Morgan said there was no doubt that movement in the official cash rate was a key factor in Greater's pricing changes, "however, it's important that we take a holistic approach and consider the impacts on the business, our regulatory requirements, and critically, our customers."
Headquartered in Newcastle, NSW, Greater Bank currently services more than 270,000 customers across NSW and South-East Queensland.
WHAT DO YOU THINK? We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on the Newcastle Herald website. Find out how to register so you can enjoy civil, friendly and engaging discussions. Sign up for a subscription here.
