Fixed rates at ANZ, NAB and NAB are for NAB’s hike, while cash rate is on hold

Although the Reserve Bank of Australia did not adjust the cash rate as it was widely expected, several lenders including NAB, ANZ and other major players, had no problem raising rates last week.

CreditorWatch Chief Economist Anneke Thompson stated that changes in inflation and labor conditions are likely to lead to an increase in cash rates.

“Despite three consecutive quarters of inflation being on or above the top range of the official inflation target band, today’s interest rate decision comes as no surprise – it does, however, seem that inflation is here to stay, at least for the short term,” she said.

On the labour front, Australia’s employment growth has been a “shining light” for the economy and is fueling wage growth forecasts.

“With this in mind, an interest rate rise appears imminent, but the velocity and speed of increases are still very uncertain,” Ms Thompson said.

“While inflation is a key target for the RBA, full employment is another —having just reached full, or close to full employment, it’s highly unlikely the RBA will choose to threaten this status by raising the cash rate too quickly.”

PropTrack’s economist Paul Ryan shared similar insights. He shared similar insights and said that the RBA was keeping an eye on inflation expectations to ensure that they don’t get pushed up by an increase in cost-of living.

“Higher inflation increases the likelihood of higher interest rates later in the year, which will weigh on housing price growth” Mr Ryan said.

“The outlook for housing prices later in the year is one of a balance between higher mortgage rates and the higher income growth the RBA is looking to see before raising rates.”

Despite the expected increase in cash interest rates this month, lenders are still making adjustments to their rates. Here are some major changes over the past week.

NAB

In its Tailored & Choice package products, NAB’s fixed rates increased as high as 40bps. These are the most significant rate increases.

ANZ

ANZ has increased its fixed rate residential and investment loans by up to 30%. These are only a few of the changes.

Bendigo Bank

Bendigo Bank has announced rate increases of up to 70% in its Complete Home Loan Product. This is for investors and owners-occupiers.

Athena

Athena’s fixed rates increased by as much as 85bps over the past week, with investor rates getting the highest increases.

Adelaide Bank

Both owner-occupier and investor fixed rates under Adelaide Bank’s Smart Fix and Smart Saver products went up by as much as 70bps.

UBank

UBank announced the biggest rate increases of all lenders over the past week. It announced a fixed rate increase of up 135bps.

86 400

The most recent rate increase at 155bps has been implemented by 86 400 over the last week. This applies to the fixed rate for Investment Own Home Loan Interest Only. These are some highlights:

ME

ME followed the fixed-rate hike trend while increasing variable rates for owner occupant loans through the Member package Flexible Loan product. Investors also saw a reduction in variable rates under the same product.