Amid growing criticism that lenders have been slow to pass on the cut in official interest rates to rural clients, Rabobank has today announced it will lower the variable base rate on its rural loans by 1pc per annum, effective from December 12.
The Reserve Bank of Australia yesterday lowered the official cash rate by 1pc to 4.25pc.
Opposition spokesman for agriculture, John Cobb, yesterday said some farmers and small businesses have gained had as little as .20pc from the overall 3pc reduction in official rates over the past four months.
However, Rabobank general manager Rural Australia Peter Knoblanche today said the bank had reviewed funding costs and was in a position to pass on the full 1pc rate reduction to its clients following the Reserve Bank of Australia’s decision to reduce the official cash rate yesterday.
"We are very pleased to be able to pass on the benefits of this official cash rate reduction in full to farmers at a time when many in the agricultural sector are still contending with continuing high input costs, volatile commodity prices and challenging seasonal conditions," he said.
The reduction follows earlier cuts in this rate by Rabobank Australia of 0.60pc in November, 0.80pc in October and 0.25pc in September.
The bank has also been reducing its fixed interest rates in recent months, reflecting changes in the cost of funding.
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