Lenders are passing on a higher proportion of the RBA's cut than last month, but many are still dragging their feet on dropping rates.
New RateCity research has found that lenders have been reticent to announce rate reductions this month. In more than a week since the Reserve Bank's 25bp rate cut, RateCity spokesperson Michelle Hutchison said only 13 lenders have thus far announced cuts.
"That's just over half the number of lenders that announced standard variable rate cuts during the six days following the RBA rate drop in May," she said.
Hutchison said the reluctance may indicate that lenders were not expecting two consecutive cuts from the Reserve.
"However, with the major four banks - which set the benchmark for the finance industry - announcing rate drops on Friday, we expect the majority of Australia's home loan market to follow with some rate reductions this month," she said.
The lenders who have announced cuts have passed along more of the RBA's reduction than last month, Hutchison said.
"The average drop was 21bps, which is 84% of the 25bp RBA rate cut. This is a higher proportion compared to last month, when 64% of the 50bps was passed onto variable home loan borrowers," she said.
Majors round out rate moves ...
... As second tiers follow suit