The Reserve Bank has slashed interest rates to a record low of 0.1 per cent — but many banks have form for not passing it on to customers.

The Reserve Bank of Australia has again slashed interest rates and taken other steps to try to alleviate COVID-19 economic pressures, but it could take weeks before banks pass on the cut to customers.

Confirming predictions of a Melbourne Cup Day cut, the RBA shaved 15 basis points from the official cash rate, which now stands at 0.1 per cent — the lowest on record.

The RBA said the interest rate carving and its decision to implement further unconventional monetary policies were to alleviate economic pressures fuelled by the COVID-19 pandemic.

RateCity research director Sally Tindall said it could take weeks before banks decide to pass on the cut to consumers.

“The RBA governor wants this rate cut to help reduce ‘problem loans’ but this will only work if the banks pass it on,” Ms Tindall said.

“There is immense pressure on the banks to do the right thing and pass this rate cut on in full, particularly as many lenders failed to pass on the last RBA cut to their variable customers.”

After the RBA cut rates by 25 basis points on March 3, the big four banks passed it on full, with the ANZ and National Australia Bank cuts kicking in 10 days later while Westpac followed on March 17 and Commonwealth Bank on March 24.

By that stage, the RBA had swung into emergency mode, again cutting rates by 25 basis points on March 19.

But ANZ was the only one of the big four that reduced variable rates on that occasion, by 15 basis points and 8 days after the central bank’s move.