The non-major bank has announced various cuts to its small business fixed rate products.
Suncorp Bank has cut fixed rates on its Small Business Essentials fixed rate products.
The new product pricing is as follows:
- One-year and two-year fixed rate (residential security) - 3.79 per cent
- One-year and two-year fixed rate (commercial security) - 4.09 per cent
- Four-year fixed rate (residential security) - 3.89 per cent
- Four-year fixed rate (residential security) - 4.19 per cent
- Five-year fixed rate (residential security) - 3.99 per cent
- Five-year fixed rate (commercial security) - 4.29 per cent
Suncorp’s changes came ahead of the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate for the fourth time in less than 12 months, to a new record low of 0.5 per cent.
The RBA’s decision stems from weakened economic conditions both locally and globally, driven by the growing concern of the coronavirus outbreak, and causing markets to fall around the globe.
Analysts initially anticipated that the central bank would hold the cash rate, however quickly revised their predictions in light of economic conditions.
According to the ASX’s RBA Rate Indicator, the proportion of those predicting a cut jumped from 18 per cent on Friday (28 February) to 100 per cent on Monday (2 March).
Since the announcement, several other lenders have slashed interest rates, including all four major banks, with many passing on the 25 basis point cut in full to customers.
[Related: RBA slashes cash rate to new low]