ANZ has moved ahead of the Reserve Bank of Australia (RBA) by cutting its fixed mortgage interest rates 11 days before the central bank’s next policy decision.
The bank announced reductions of between 0.05 and 0.40 percentage points across its fixed-rate home loan offerings, intensifying speculation that the RBA will announce an official rate cut on May 20.
“ANZ now offers the lowest one- and two-year fixed mortgage rates among the big four banks, starting at 5.39%,” said Sally Tindall, Canstar’s data insights director. “The bank is clearly positioning itself to attract new customers ahead of a widely expected cash rate cut.”
With inflation finally returning to the RBA’s target range for the first time since 2021 and global markets reacting to economic turbulence, including new tariffs from Donald Trump, economists believe a rate cut is imminent.
While most anticipate a 25-basis-point cut, market expectations suggest a slightly better than 50% chance of a larger, 50-basis-point reduction—bringing the cash rate down to 3.60%.
NAB recently forecasted the RBA could cut rates by 0.50 percentage points this month, followed by a series of 25-point cuts in July, August, November, and February—though such a path would require a significant shift in the central bank’s current outlook.
Despite not discussing further cuts in its April meeting after February’s rate drop—the first in nearly five years—analysts say conditions now favor further easing.
Tindall added that mortgage holders should expect more rate relief in the coming months. “This is positive news for borrowers. With two of the big four banks cutting fixed rates in recent weeks, more are likely to follow. But to stay competitive, lenders may need to offer rates in the 4% range.”
