Huge Aussie bank DROPS interest rates – here’s what you need to know
- Macquarie Bank reduces fixed interest rates
A major bank will start cutting fixed rates, in a sign that major lenders expect major rate cuts in 2025.
Macquarie Bank cuts its two-year fixed rate by 20 basis points to 5.39 percent on Thursday, compared to 5.59 percent for homeowners with a mortgage deposit of 30 percent.
This is now the lowest fixed rate in Australia, with the 30-day interbank forward market expecting the Reserve Bank of Australia to cut rates four times by 2025.
Macquarie Bank’s rate is much lower than the Commonwealth Bank’s equivalent fixed rate of 6.29 per cent for those paying off principal and interest.
A major bank will start cutting fixed rates, a sign that major lenders expect big rate cuts in 2025
While RBA Governor Michele Bullock has ruled out relief before Christmas – from an existing 12-year high of 4.35 per cent – the futures market expects her administration to cut rates by 100 basis points next year.
This would take the RBA cash rate to 3.35 percent for the first time since March 2023.
Due to expectations of major interest rate cuts, banks are now offering lower fixed than variable interest rates.
Macquarie Bank’s variable rate is higher at 6.14 per cent, with parent company Macquarie Group not expecting the first RBA rate cut until March 2025.
NAB, ANZ and Westpac expect rate cuts to begin in February next year, while the Commonwealth Bank, Australia’s largest home lender, is now predicting a rate cut in December.
Macquarie Bank will cut its two-year fixed rate by 20 basis points to 5.39 per cent on Thursday, compared to 5.59 per cent for homeowners with a 30 per cent mortgage deposit.