Hon. Tjorn Sibma questions the delay in Keystart passing on interest rate reductions and seeks clarification on future rate adjustments following RBA decisions. The Minister's response is brief and refers to existing policy.

AnsweredQoN 239Legislative Assembly
Asked
27 May 2025
Portfolio
Housing and Works

QuestionView source ↗

Keystart—Interest rates
239. Hon Tjorn Sibma to the parliamentary
secretary representing the Minister for Housing and Works:
Noting that Keystart
has decided to reduce interest rates on its standard variable loans from 7.6%
to 7.35% from 10 June in line with the Reserve Bank of Australia's decision
last week on 20 May to reduce the official cash rate by 25 basis points, I ask
the following.
(1) Why is it not possible to pass on the
reduction to customers sooner, as has been committed by other lenders?
(2) Is it Keystart policy to pass on in full all
future potential RBA decisions to further reduce the official cash rate?

AnswerView source ↗

I thank the honourable
member for some notice of the question. On behalf of the Leader of the House, I
provide the following information from the Minister for Housing and Works.
(1) Keystart processes all interest rate changes
as soon as operationally possible.
(2) Under the Cook Labor government, Keystart
announced an update to its interest rate setting policy on 1 July 2023, which
remains in place.

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