How long does it take lenders to pass on RBA rate cuts?

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While many lenders pass on all or some of an RBA interest rate cut to their borrowers, it often doesn’t happen immediately. 

RateCity analysis of the three RBA interest rate cuts to May 2016 shows the first few lenders change their rates almost immediately after the RBA meet, however some take well over a month. 

The bulk of lenders had passed on their rate cuts by the one month mark, but the last few lenders take up to two months to make a change. 

Not all lenders were quick to move. The following chart shows how long each lender too to make their change available to new customers. Some lenders waited slightly longer to pass it on to their existing customers.


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