It seems reality is finally dawning that the official cash rate is unlikely to be raised anytime soon, and the more likely next move is down. From The Adviser:
Two major banks have announced rate cuts of up to 50 basis points to their fixed rate home loan offerings.
ANZ Bank and the National Australia Bank are the last of the big four to announce cuts to their fixed rates, following similar announcements from the Commonwealth Bank and Westpac.
NAB has dropped its five-year fixed rate for owner-occupied, principal and interest home loans by 50 basis points, from 4.59 per cent to 4.09 per cent.
The bank has also reduced its fixed rates on investor loans by up to 35 basis points, with rates starting from 4.09 per cent.
As of Friday (9 March), ANZ also dropped fixed rates on its “interest in advance”, interest-only home loans by up to 40 basis points, with rates starting from 4.11 per cent.
Further, fixed rates on its owner-occupied, principal and interest home loans have fallen by 10 basis points, with rates now starting from 3.99 per cent.
RateCity money editor Sally Tindall believes that the rate movements have been influenced by the banks’ cash rate expectations.
“The fixed rate war shows our big banks are not pricing in a rate hike anytime soon,” Ms Tindall said…
