Big four, Virgin Money pass on rate cut, but at least eight lenders yet to reveal their next move

At least eight lenders are yet to pass on this week’s interest rate cut to their customers – but one who was lambasted for not passing on the February cut has acted swiftly. See the list of which lenders have passed on the cut

RBA Governor Michelle Bullock.

At least nine lenders were yet to commit to passing on the Reserve Bank’s cash rate slash to their customers – but one who was lambasted for not passing on the February cut has been quick to act

The Reserve Bank’s 0.25 percentage point reduction is the second rate cut in three years, following a flurry of 13 rises from 2022.

While Virgin Money refused to pass on any of the 0.25 per cent cut in February, it was among the first to commit to passing on the latest rate drop on Tuesday.

Bank of Queensland, which owns Virgin Money, said all its lending subsidiaries would pass on this week’s savings in full.

Reserve Bank governor Michele Bullock said the cut, which was expected by economists, came as inflation had fallen but there was still volatility and “geopolitical uncertainties”.

While the big four banks and other major lenders like AMP and Macquarie Bank have already flagged rate cuts to customers over coming weeks, others are yet to decide.

As at 2pm Wednesday, mortgage providers including BCU and Aussie Home Loans, told customers they were still reviewing the change and their interest rates.

Australia's housing market has already reacted to interest rate cuts this year, rising to a new record high in the month of February as buyers come back to the market. Picture: Nadir Kinani

In a statement on its website, Bank of Us said its pricing committee will “consider several factors including balancing the interests of both our borrowers and depositors and the bank’s financial sustainability”.

Meanwhile Broken Hill Bank has said it has a proposal to pass on the drop in its standard variable home and investor loan rates, from early June.

Its board will confirm the change in a meeting this month.

Other lenders yet to decide on whether to pass on the cuts, as at 2pm Wednesday, included loans.com.au; Community First Bank; Adelaide Bank and IMB Bank.

Analysts are suggesting the cash rate could fall by another 0.5 per cent by the end of 2025.

The RBA’s next rates decision is due on July 8.

Originally published as Big four, Virgin Money pass on rate cut, but at least eight lenders yet to reveal their next move