Two major Australian banks join growing interest rate hike calls
Two of Australia’s major banks have increased fixed mortgage rates just days before the Reserve Bank’s next interest-rate decision.
ANZ and NAB raised their fixed home loan rates by 0.20 percentage points on Thursday, taking their lowest advertised fixed rate to 6.49 per cent.
The moves follow ING, which lifted fixed rates for both owner-occupier and investor loans by the same amount a day earlier.
According to Canstar, nine lenders have now increased fixed rates ahead of the next RBA meeting. While the number is rising, it remains well below the 60 lenders that lifted fixed rates in the month before the RBA’s May cash rate increase.
Canstar data insights director Sally Tindall said the recent increases were a sign that lenders were preparing for the possibility of another rate rise. However, she noted the RBA could wait until November for clearer inflation data.
The RBA board is scheduled to meet on September 28–29.
The cash rate currently stands at 4.35 per cent, after three consecutive increases earlier this year. The board held rates unchanged at its two most recent meetings while waiting for further economic data.
Forecasts for another increase have strengthened. Citi expects two more rate rises in 2026 and has lifted its projected peak cash rate to 4.85 per cent, up from 4.6 per cent.
Macquarie has also forecast a rate increase at the RBA’s next meeting.
Citi economist Faraz Syed said persistent inflation, a tight labour market, weak productivity and higher oil prices could keep inflation elevated. Citi has also pushed its forecast for the first rate cut out to the fourth quarter of 2027.
RBA Governor Michele Bullock has previously indicated that further increases remain possible, while recent meeting minutes showed the board had seriously considered another hike before deciding that more data was needed.
For borrowers, the latest fixed-rate increases highlight the changing mortgage market as banks adjust pricing ahead of the RBA’s next decision.
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Source : 9 News
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