Callable bonds may not be called immediately after a rate decrease because

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A callable bond may have a call price that is at a premium above its par value. This means that if the bond is called immediately after a rate decrease, the bondholder will lose out on potential interest payments that they could have received if they had held the bond until maturity. Additionally, the call provision may be deferred for several years after the bond's issue, which means that the issuer may not be able to call the bond immediately after a rate decrease. Furthermore, recalling old bonds and issuing new ones involves non-trivial flotation costs, which can be costly for the issuer. For these reasons, callable bonds may not be called immediately after a rate decrease.

Callable Bonds May Not Be Called Immediately After a Rate