ME Bank has announced that it will hold its standard variable interest rates following the Reserve Bank's decision to maintain the official cash rate at 4.25%.
This decision gives super customers a fairer rate than those offered by the big banks.
"Raising interest rates in a declining rate environment is a clear signal that the major banks are looking to place the full financial burden of the higher cost of funding onto their customers," said ME Bank CEO Jamie McPhee.
"With the entire banking sector facing higher funding costs, a fairer outcome is to share the impact between customers and shareholders."
"We will continue to do as much as we can to keep the burden off customers, for as long as possible," added Mr McPhee. Mr McPhee also commented on the vital balancing act required in light of present market pressures.
"In the current environment, we will not raise our standard variable rates so that customers are weighed down with the full financial burden of higher funding costs. We are committed to balancing the needs of shareholders and customers over the long term.
"In addition, we currently have no intention of pursuing mass redundancies in an effort to reduce operational expenses," he added.
ME Bank was created to give members of industry superannuation funds - such as AustralianSuper - lower cost banking and real service.
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