Bank of Queensland took the lead once again on home loan pricing yesterday, with the bank electing to cuts its standard variable home-loan rate by 20 basis points. The Reserve Bank of Australia had earlier announced a cut in the target cash rate of 25 bps, to 3.5 per cent.The RBA has now cut the cash rate by 1.25 percentage points since the present cycle of easing of monetary policy commenced in November last year, in response to the curbs on the domestic inflation outlook related to the austerity measures in Europe and questions about the stability of some European banks.As reported earlier in the week, standard variable rates has fallen by an average of 32 basis points since the RBA cut the cash rate by 50 bps in May - a cut explicitly rationalised on the basis that lenders were unlikely to pass much of it on to borrowers.The latest cut will once again give banks some scope to claw back at least a few basis points in margin, with the heat fading from the debate over whether banks are expected to follow the RBA pricing lead.In a statement yesterday, BOQ cited the well-known drivers of its decision, including the rising cost of funds in overseas debt markets - a point also noted by the RBA in its short statement of its reasons for the cut in the cash rate. BOQ also highlighted the cost of deposits in Australia as factor.Another Queensland-based lender, QT Mutual, sought some publicity for a cut of 25 basis points in its "tracker" home loan - a loan which sees the lender contractually bound to follow the RBA cash rate.QT Mutual omitted to publicise the fact that, so far, it has passed on only 75 bps out of the 125 bps in rate cuts from the RBA this cycle on the bulk of its variable-rate home loan portfolio, and that its most recent change in interest rates was an increase of just seven basis points.Last month's rate cut might have provided some spark in the home loan market in May.The Australian Finance Group said its sales increased by a third in May, compared with April, to $3.0 billion, while demand was one fifth higher than in May last year. AFG does not seasonally adjust its data, which is drawn from management reports on home loans processed over the month.