ANZ has taken proactive measures by reducing its fixed interest rates, just 11 days prior to the Reserve Bank of Australia’s upcoming cash rate decision. The bank’s latest announcement reveals a decrease in fixed-rate mortgage options ranging from 0.05 to 0.40 percentage points, igniting speculation of a potential rate cut by the RBA on May 20.
As a result of these changes, ANZ now offers the most competitive rates for one- and two-year fixed mortgages among the major banks, starting at 5.39 per cent, according to Canstar’s Data Insights Director Sally Tindall. This strategic move appears to aim at attracting new customers while also keeping an eye on the anticipated adjustments in cash rates.
Market hints suggest a high probability of a 25-basis-point descent; however, a slightly over 50% chance exists for a double-cut that could lower the cash rate to 3.60 per cent. Financial experts expect that further reductions in interest rates are likely in the coming months, creating a more favourable landscape for borrowers.
Tindall noted that the current wave of rate cuts is advantageous for those with mortgages. With two of the four major banks recently reducing fixed rates, it is anticipated that others will follow suit. However, banks may need to consider offering fixed rates in the 4% bracket to enhance their appeal to customers. Overall, these developments signal positive news for borrowers navigating the current loan market.