Rabobank Australian will make a 0.25 per cent cut reduction on rural loans per annum following the Reserve Bank of Australia’s (RBA) recent interest rate cut.
Rabobank group executive for Country Banking Australia, Marcel van Doremaele said the bank was pleased to be able to pass on the full 0.25% rate reduction to its Australian rural lending clients, following the Reserve Bank of Australia’s decision to cut the official cash rate (OCR), announced this month.
“It will be a welcome reduction in costs, particularly when primary producers are still facing a relatively high-cost environment in terms of inputs, such as fertilisers, farm chemicals, fuel and freight,” he said.
Mr van Doremaele said the bank had also undertaken a detailed review of its deposits business and was able, in the current circumstances, to not pass on the full 0.25% interest rate reduction on a number of its deposit products. “While our variable rate and shorter-tenure term deposit rates are reducing, some of our longer-tenure term deposits are in fact increasing,” he said.
The deposit rate changes will take effect on February 24, 2025 or February 28, 2025.
