The RBA is expected to cut the cash rate at next week’s meeting but not all banks are following the tide. (Source: AAP) <\/p>\n
Numerous lenders have been slashing their home loan interest rates<\/a> in anticipation of the Reserve Bank of Australia (RBA)<\/a> cutting the cash rate next week. But one major bank<\/a> has gone against the trend and fired off a rate hike.<\/p>\n ANZ<\/a> has today increased the rate on its ANZ Plus variable home loan by 0.16 percentage points, taking the rate to 5.75 per cent. The rate change is for new customers only and doesn\u2019t impact existing borrowers, but it’s still a \u201csurprise move\u201d by the Big Four bank<\/a>.<\/p>\n Canstar data insights director Sally Tindall said the hike to the bank\u2019s lowest variable rate was a reminder that some banks were still looking to protect margins.<\/p>\n RELATED<\/p>\n \u201cIt\u2019s an unusual move just days out from a Board meeting that could deliver a cut, but it shows how some banks don\u2019t follow the tide. Let\u2019s just hope it’s not contagious,\u201d Tindall said.<\/p>\n Commonwealth Bank<\/a> and Westpac<\/a> now have the joint lowest variable rate of the Big Four at 5.59 per cent, while Westpac\u2019s lowest variable rate is 5.94 per cent.<\/p>\n The last variable rate hike from a major bank for new customers was back in December 2023 by ANZ. Across the market, banks have largely been cutting variable rates, not hiking them.<\/p>\n Police Credit Union dropped its lowest variable rate to just 4.99 per cent for those with a 20 per cent deposit last month, marking the first time variable rates have started with a \u20184\u2019 in two years.<\/p>\n Do you have an interest rates story to share? Contact tamika.seeto@yahooinc.com<\/p>\n NAB today cut its fixed rates<\/a> by up to 0.25 percentage points, bringing its lowest advertised rate to 5.19 per cent for its 2-year term.<\/p>\n The move means NAB has the lowest 1- to 5-year fixed rates among the Big Four banks, sharing top spot with ANZ for its 1- and 2-year terms.<\/p>\n Nearly 20 banks have cut at least one fixed home loan rate in the past month, as they anticipate another cash rate cut.<\/p>\n \u201cWhile fixed rates aren\u2019t the flavour of the month for most borrowers, cuts like these are a sign the banks are bracing for the RBA to move again \u2013 most likely on Tuesday,\u201d Tindall said.<\/p>\n The RBA is widely expected to cut the cash rate<\/a> by 25 basis points to 3.60 per cent when it meets next week, following falling inflation figures.<\/p>\n Headline inflation<\/a> eased to 2.1 per cent in June, down from 2.4 per cent, while trimmed mean inflation came in at 2.7 per cent, down from 2.9 per cent.<\/p>\n Story Continues <\/p>\n All of the Big Four bank economic teams<\/a> expect the RBA will cut interest rates on Tuesday.<\/p>\n Commonwealth Bank and ANZ expect there will be a second cut in November, Westpac<\/a> thinks there will be three more in November, February and May, while NAB has pencilled in two further cuts in November and February.<\/p>\n Tindall said she expects all Big Four banks will pass on the next cash rate cut in full to their variable customers.<\/p>\n \u201cAfter 13 RBA rate hikes, four of which were doubles, the third cash rate cut in the cycle is not the time to baulk,\u201d she said.<\/p>\n A borrower with a $600,000 debt and 25 years remaining on their loan could see their repayments drop by $90 following an August rate cut.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n ANZ has made a ‘surprise’ interest rate move ahead of the RBA’s cash rate call. (Photo by Lisa Maree Williams\/Getty Images) \u00b7 Lisa Maree Williams via Getty Images <\/p>\n