Fixed Rate Cut
Another of the big banks has moved to drop its fixed rates, just a couple of weeks before the Reserve Bank of Australia meets again to discuss interest rates.
NAB has cut its fixed-rate mortgages across all its loan terms, just two weeks after Macquarie Bank cut its one- to three-year fixed rates.
NAB has reduced its fixed mortgages by -0.20 percentage points for a one-year term, -0.15 percentage points for a two-year term, and -0.05 percentage points for a three-year term and above.
Canstar’s data insights director, Sally Tindall, believes other big banks will start to follow the trend.
“The cost of wholesale fixed rate funding has started to ease slightly. This, combined with a prospective cash rate cut, should push other banks into moving on fixed rates,” Tindall says.
“While a few banks are now starting to sharpen their offerings, fixed rates still have a way to fall before they become fashionable again with borrowers.”
Speculation of the RBA finally dropping interest rates when it meets in mid-February has been gaining traction since the rate of inflation growth slowed to 3.2% at the start of February.