Bananacoast rejects rate cut claims
BANANACOAST Credit Union has rejected an attack from Federal Nationals Leader Warren Truss, saying claims the institution failed to pass on full rate cuts to farmers were "untrue".
Speaking before Tuesday's Reserve Bank board meeting, where the central bank decided to leave rates on hold, Mr Truss listed Bananacoast among six financial institutions that "only passed on miserly partial cuts".
However, Bananacoast chief executive Lyndon Kingston said the credit union had passed on both .25% rate cuts delivered by the Reserve Bank in full to both residential mortgage and business customers, including farmers with agri-business loans.
"BCU aims to provide a fair go to members and because of this, the decision was made to pass on the rate relief entirely," Mr Kingston said.
Mr Kingston invited farmers to switch their agri-business loans to Bananacoast if they were unhappy with their current financial institution.