ANZ has cut interest rates on fixed home loans a week before the Reserve Bank of Australia (RBA) gathers to make a decision on the cash rate. Those with deposits of 20 per cent or more will benefit from a 0.25 per cent drop in their fixed rate on a one to five-year term.
This is the second time the major Aussie bank has adjusted its fixed home loan rate in less than three weeks. It’s not the only one either, with the other big four banks cutting fixed rates over the last few months.
Yahoo Finance contributor Sarah Megginson said the trend indicated that borrowers could be getting interest rate relief from the RBA sooner rather than later.
“It’s because they know the cash rate (and therefore, your variable rate home loan) is on the way down,” the Finder personal finance expert wrote.
“Inflation has cooled and we’re now at risk of recession, so that RBA has to take the pressure off our budgets and keep the economy flowing by loosening our purse strings.”
ANZ last adjusted its fixed rates back on October 11 and comes after a string of similar movements from the other Big Four banks.
NAB changed its fixed rates on October 8 and July 22, while Commonwealth Bank made an adjustment on August 23, and Westpac announced changes on August 21.
“Fixed rates are still firmly falling across the market,” Canstar data insights director Sally Tindall said.
“Almost 30 lenders have cut at least one fixed rate in October alone, while just five lenders have hiked in this time.”
Mozo personal finance expert Rachel Wastell told Yahoo Finance the cuts across the market made it “increasingly clear” that we were likely at the peak of the RBA’s rate hiking cycle.
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“All of these indicators suggest that it is likely the RBA’s next move will be to cut rates, rather than raise them further.
“We can see this reflected in the recent cuts to home loan rates, particularly longer term fixed rates – where banks have the most opportunity to offer comparably low rates now that will most likely end up higher than variable rates during those fixed terms.”
A poll of more than 3,500 Yahoo Finance readers showed 69 per cent weren’t interested in fixing their rates as they were hopeful of the RBA cutting rates in the near-term.
