- ANX has slashed fixed rate mortgages
A major bank has slashed fixed mortgage rates ahead of an expected Reserve Bank rate cut next week.
ANZ has trimmed its one to five-year fixed rate mortgages by up to 35 basis points.
The latest move was made with the Commonwealth Bank, Westpac and NAB expecting another rate cut on July 8, to the existing 3.85 per cent cash rate.
Ironically, ANZ is the only Big Four bank expecting the RBA to next move again in August instead of July.
Despite seeing no relief next week, ANZ has slashed three-year fixed rates by 35 points to 5.34 per cent.
The bank cut one-year fixed rates by 20 basis points to 5.29 per cent, as two-year fixed rates also fell by 0.2 percentage points to 5.19 per cent.
ANZ cuts its four and five-year rates by 10 basis points to 5.74 per cent, which still be higher than its lowest variable rate of 5.59 per cent.
Adam Boyton, ANZ’s head of Australian economics, is the only chief forecaster with a Big Four bank to predict no relief on July 8, arguing the RBA would wait until August 12, following the release of June quarter inflation data.
A major bank has slashed fixed mortgage rates ahead of an expected Reserve Bank rate cut next week
‘Our own view remains that we will see another rate cut in August. I don’t think the [RBA] will go in July, although markets have moved toward now expecting a July rate cut,’ he said in a May ANZ podcast.
Financial markets are expecting the RBA to cut rates next week by 25 basis points, taking them to 3.6 per cent for the first time since May 2023.
More relief next week would see a borrower with an average $660,000 mortgage save another $106 on monthly repayments.
The 30-day interbank futures market is also expecting more relief in August and November, which would see the Reserve Bank cash rate fall to 3.1 per cent by the end of 2025 for the first time since February 2023.
