ANZ has raised its fixed mortgage rates ahead of the upcoming interest rate decision by the Reserve Bank of Australia, signalling expectations of further tightening in monetary policy.

The bank increased several fixed-rate home loans by 0.25 percentage points, delivering an early blow to borrowers as economists anticipate two interest rate hikes in March and April. Following the revision, ANZ’s lowest fixed rates now stand at 5.99 per cent for one-year terms, 6.04 per cent for two-year terms and 6.14 per cent for three-year terms.

Data from Canstar shows that ANZ is among a growing number of lenders raising fixed rates ahead of the central bank’s decision scheduled for 17 March. According to Canstar, 26 lenders have increased at least one fixed mortgage rate over the past two weeks.

Other lenders that have made similar moves include Bankwest, Ubank, Heritage Bank and RACQ Bank. Research by Canstar also found that the average two-year fixed mortgage rate is now 0.21 percentage points higher than the average variable rate.

Canstar data insights director Sally Tindall said lenders often adjust fixed rates ahead of official central bank decisions, making them an early indicator of where borrowing costs may head. She noted that with most of ANZ’s fixed rates now above six per cent, borrowers may begin to feel a psychological shift in the mortgage market.

Meanwhile, ANZ has joined the other major Australian banks — Commonwealth Bank, Westpac and National Australia Bank — in forecasting further rate increases. The banks say persistent inflation, a tight labour market and global pressures such as the ongoing conflict in the Middle East could keep price pressures elevated.

The RBA last raised the cash rate by 0.25 percentage points on 3 February, bringing it to 3.85 per cent. If the central bank delivers three additional hikes as predicted, the cash rate could rise to about 4.35 per cent, further increasing borrowing costs for Australian households.