BOQ has open the door for a full round of out-of-cycle rate hikes as the bank lifted its variable home loan rate and line of credit for both investors and owner-occupier loans.
Blaming rising funding costs, BOQ will raise both credit structures by 15 basis points effective July 2nd.
With the RBA standing firm on rates until at least Q3 2019, we don’t expect BOQ to be the only bank to snug rates higher on an out-of-cycle basis.
Our ALGO engine triggered a sell signal on BOQ on June 21st at $10.50. We maintain our negative outlook on the stock with a medium-term target near $9.40.
Bank of Queensland
Todd has worked in the financial industry for 20 years. During this time, his primary focus has been in the Foreign Exchange, Global Equities and Fixed Income areas. Todd has also served as a Judicial Advocate in several tax cases in the US Federal Court.