Bank cuts interest rates

This is not a FAKE headline –Cairns Bank axes lending costs

l CAIRNS CBD

| Nick Dalton CAIRNS Bank – the people’s bank – has cut interest rates in a bid to help their customers who are ‘hurting’ because of cost-of-living pressures.

When the Reserve Bank of Australia (RBA) increased rates by .25 per cent to 3.85 per cent on May 2, Cairns Bank reduced their residential home rate on loans from 7.5 per cent to 6.99 per cent or by .51 per cent.

Earlier, in March, when the RBA upped the rate again by .25 per cent, Cairns Bank kept their figure at 7.5 per cent.

Cairns Bank chief executive officer Peter Phillips said their customers were hurting because of the increased costs of living.

“When the RBA increased it again by .25 per cent we asked ourselves what can we do to look after our customers,” he said

“We’re not about rates, we are about looking after our customers.

“This is going to hurt us too, on our profits, but we are focused on our customers,” he said.

“It will come off our bottom line. We won’t be making as much profit but this is about investing in our customers.”

Mr Phillips said the bank’s variable rate was 7.5 per cent when most others were around the 8 per cent mark and the fixed rate was between 5.5 and 5.75 per cent, about the same as other banks.

But he said as far as he was aware Cairns Bank was the only financial institute to reduce its loan rates.

Mr Phillips said he believed the RBA would continue to increase rates but the bank could absorb another .5 per cent in rises.

“By our customers not having to increase their repayments they can buy groceries and handle rising energy costs.”

He said the bank was considering other ways to help their customers as well. Cairns Bank is owned by the people of the region and was established in 1899. READ MORE ON PAGE 2