Rabobank Australia has announced it will reduce the variable base rate on its rural loans by 0.25% per annum, effective February 28, 2025.
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.
"We are pleased to be in a position to pass on the full official cash rate reduction to our rural lending clients at this time. 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.
