 Police & Nurses pass on full RBA rate cut
Police & Nurses Credit Society have passed on in full the 0.75 per cent cut to interest rates. The Western Australian based lender will pass on the Reserve Bank's rate cut to their customers effective immediately. Their most popular loan, making up 60 per cent of business , is the Easypay Home Loan. This product variable rate is now 6.97 per cent.
The Reserve Bank of Australia (RBA) shocked many by cutting rates by 75 basis points on November 4, with many predicting a cut of only 50 basis points. However, the RBA may have been aware that banks would not pass on the full 50 basis points to home owners, therefore opting for a 75 basis points cut.
Business lending, personal loans and credit cards have created less media attention than residential lending, and have not received cuts to the same extent.
The first bank to react was the Commonwealth Bank who reduced rates by 58 basis points, with Westpac second with a cut of 65 basis points. The other major banks followed in similar style, but not one passed on the full 75 basis points cut.
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