Bank Pass on December Interest Rate Cut… But When?

We  all know the news that all banks and smaller lenders have passed on the full 0.25% rate cut.

The question is, when will they pass it on? As mentioned in an earlier post lenders are quick to pass on interest rate increases but slow to pass on interest rate decreases. Below is a table comparing the differences between the banks between the November and December interest rate decreases.

The biggest difference between the rate announcement and the time they are going to pass on the rate cut is Bendigo and Adelaide Banks. In the last 2 months their customers are paying an extra 0.25% over 50 days. CBA was the quickest to pass on the rate cut in November but has taken eleven extra days this time round.

From this data it is important to choose a lender that pass on rate cuts as soon as possible. So called comparison rate schedules never really show the true cost of a loan and you need to be aware which lenders serve their customers best.

Current Bank Interest RatesBank Rate Cut November Rate Cut Days December Rate Cut Days Date December Rate Cut
Adelaide Bank/ Bendigo Bank -0.25% 26 24 December 30th
AMP -0.25% 9 13 December 19th
ANZ -0.25% 12 10 December 16th
Bank of Melbourne -0.25% 12 13 December 19th
BankWest -0.25 12 to 16 13 December 19th
Citibank -0.25% 16 10 December 16th
Commonwealth Bank -0.25% 2 13 December 19th
Homeside Lending -0.25% 9 10 December 16th
ING Bank -0.25% 5 9 December 15th
Member equity bank ( ME) -0.25% 5 5 December 11th
Macqauire Bank -0.25% 19 ???  
NAB -0.20% 9 10 December 16th
St George Bank -0.25% 12 13 December 19th
Suncorp Bank -0.25% 16 13 December 19th
Westpac -0.25% 12 13 December 19th



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