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Homebuyers and those looking to lock in rates refinancing may have missed their window for lower rates with 53 lenders hiking since the last RBA board meeting.<\/p>\n
Market odds of a February rate rise have now doubled days before the RBA meets, as 54 banks hike rates \u2013 some twice \u2013 putting more pressure on struggling Aussies. <\/p>\n
National Australia Bank on Friday became the latest to lift its fixed rates \u2013 by up to 0.40 percentage points \u2013 the second time it has done so within six weeks as the ASX rate tracker showed a massive market swing to a 60 per cent expectation the cash rate will be raised to 3.85 per cent by the Reserve Bank.<\/p>\n
MORE: $217m space deal to launch sleepy Aussie town into orbit<\/a><\/p>\n Clive Palmer\u2019s $215m legacy grows as daughter breaks rank<\/a><\/p>\n ASX RBA rate tracker has swung to a 60pc expectation of a hike off employment data. Source: Canstar.com.au<\/p>\n NAB\u2019s lowest fixed rate changes on Friday. Source: Canstar.com.au<\/p>\n Shockingly, two lenders have started the ball rolling with the first variable interest rate rises of the year, while in a mass repricing at least 54 have hiked fixed home loan rates since the last RBA decision, according to Canstar data \u2013 with just 12 lenders offering a fixed rate below 5 per cent, down from 38 two months ago.<\/p>\n This follows fixed rate hikes from CBA last Thursday when it predicted jobs data and inflation would force the Reserve Bank\u2019s hand before the end of summer \u2013 with all four big banks now on the move and ANZ offering the lowest fixed rate of the majors at 5.44 per cent for a two-year term.<\/p>\n Heritage Bank and People\u2019s Choice were the lenders who increased variables by what amounts to half a rate rise by the Reserve Bank \u2013 significant for its timing so close to the February monetary policy meeting. That saw six owner-occupier and investor variable rates increase by an average of 0.1 points.<\/p>\n If the RBA increases the cash rate target this year it will be the first time it will have done so since November 7, 2023.<\/p>\n Canstar.com.au data insights manager Sally Tindall said \u201cwhen the RBA Governor says a cash rate hike is a live option, banks take notice, and so it\u2019s no surprise to see 54 of the lenders on Canstar have hiked at least one fixed rate since the last RBA board meeting, including all of the majors.\u201d<\/p>\n The last time RBA Governor Michele Bullock agreed to hike rates was on November 7, 2023 by 25 basis points (to 4.35 per cent) \u2013 due to the failure to contain inflation which she considered \u201cstill too high\u201d when it was expected to be around 3.5 per cent by the end of 2024.<\/p>\n A lot will hinge on next week\u2019s December inflation data (released January 28), with the current inflation rate dropping to 3.4 per cent in November from 3.8 per cent the previous month but still above the RBA\u2019s 2-3 per cent target. The largest contributor was housing which rose 5.2 per cent annually \u2013 at a time the RBA is trying to cool the market.<\/p>\n Ms Tindall said the bottom line is Australia still has an inflation problem \u201cfour long years into this battle\u201d. \u201cA rate hike in 2026 is not a foregone conclusion, but this week\u2019s ABS Labour Force data certainly isn\u2019t standing in the central bank\u2019s way,\u201d she said.<\/p>\n MORE: More expensive than Sydney: Qld rent hits record high<\/a><\/p>\n<\/p>\n
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