Banks Offering Better Fixed Rates
In a sure sign that they think interest rate cuts are looming, the big banks have started to cut fixed interest rates.
Macquarie, AMP Bank, Bendigo, Adelaide Bank and the Bank of Queensland have all cut their fixed rates in the past three months, according to Mozo.
Research and compliance manager Peter Marshall says fixed rates are finally starting to become more competitive.
It comes as the RBA met for the first time in 2024 and decided to keep interest rates on hold. “Banks are starting to become more confident that the next change in the cash rate will be a cut, and probably more than one cut,” he says.
“When setting fixed rates, banks try to look ahead and implement anticipated future changes into their fixed rates. As they become more confident of cuts later this year, fixed rates will start to fall even further.”
He says the lowest variable rates are about 6% and now fixed rates are beginning to drop below that, particularly for those willing to lock in for two or three years.
