ANZ Jumps the Gun with Surprise Interest Rate Cut Before RBA Decision
So, here’s what just happened—and it’s big news in the world of finance and home loans. One of the big four banks, ANZ, has taken a bold step ahead of the Reserve Bank of Australia’s official cash rate decision, which is due in less than a week. In a surprise move, ANZ announced it’s cutting interest rates on its fixed-rate home loans by up to 0.35 per cent. This brings its lowest fixed two-year rate down to 5.19 per cent—making it the most competitive offer among the big four banks right now.
Now, that’s a clear signal that ANZ isn't just reacting to the market—they’re trying to shape it. According to financial analysts, this move positions ANZ as the lowest-cost fixed rate lender among the major players. And more importantly, it seems to show that the bank is now expecting the RBA to lower the official cash rate at next week’s meeting. Market sentiment currently reflects a 97 per cent probability that the cash rate will be cut to 3.60 per cent, so it’s not exactly a risky prediction. But ANZ's move stands out because just this morning they were saying a cut likely wouldn’t come until August. By this afternoon, they'd done a complete 180.
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This isn’t just about forecasting—it’s about timing and market positioning. ANZ made the rate cut before they even changed their public forecast, which suggests this was a strategic play to attract new customers, especially those looking to refinance or lock in a better deal on their mortgage. Interestingly, only about 3 per cent of ANZ's mortgage customers are on fixed rates, so this could be an attempt to tap into that segment more aggressively.
Still, despite ANZ’s competitive new rates, the broader lending market has already moved in a similar direction. In fact, there are currently at least 13 lenders across Australia offering fixed rates below 5 per cent. So while ANZ may be leading the big banks in terms of fixed rate cuts, they’re still behind smaller lenders when it comes to the absolute lowest rates available.
Bottom line: If you’re thinking about locking in your home loan rate, now’s a smart time to start shopping around. Don't settle for a rate that starts with a five or six—look into the options that begin with a four. The interest rate race is heating up, and ANZ’s early move might just be the beginning. With the RBA meeting just days away, we could be seeing more shifts in the market very soon.
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