Truss accusations wrong: BCU

Warren Truss accused the Bananacoast Credit Union of not passing on an interest rate cut to farmers.
Warren Truss accused the Bananacoast Credit Union of not passing on an interest rate cut to farmers.

FEDERAL Nationals Leader Warren Truss should have contacted Bananacoast Credit Union before wrongly accusing it of failing to pass on interest rates cuts to farmers, the institution's chief executive has said.

Mr Truss made the accusation in the lead up to this week's Reserve Bank meeting, at which it left rates on hold, placing Bananacoast in a list of institutions he said had failed to pass on the full benefits of last year's November and December rate cuts.

A spokesman for Mr Truss later said the information came from the National Farmers Federation's Agribusiness Loan Monitor, which listed Bananacoast as having delivered the full .25% cut in December but none of the .25% cut made by the Reserve in November.

However, Bananacoast chief executive Lyndon Kingston said credit union passed on the full value of both rate cuts to its agribusiness and small business customers. He said the Farmers Federation got it wrong and Mr Truss, by echoing the Farmers Federation, got it wrong too.

Not only did the credit union pass on both rate cuts to agribusiness and business loans, it also passed them on, in full, to personal loans, overdrafts, and line-of-credit facilities.

Mr Kingston accused Mr Truss of tarnishing the credit union's brand and said it was "disappointing" he had not spoken to the credit union before launching his interest rate broadside.

Topics:  interest rates warren truss

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