A major bank has started cutting fixed rates ahead of the Reserve Bank’s decision next month.
On Tuesday, Macquarie Bank abandoned its the one-year fixed rate from 5.85 to 5.69, just four weeks before the Reserve Bank’s next cash rate decision on February 18.
Macquarie Bank’s two-year fixed rate fell from 5.69 to 5.55, and the three-year fixed rate fell from 5.69 to 5.55.
Four- and five-year fixed rates remain stable at 5.69.
Canstar data analytics director Sally Tindall said the move could create a domino effect in the fixed rate market.
“The fixed rate market has been relatively quiet during the summer holidays, with more lenders raising these rates in the month of December than cutting them,” he explained.
‘However, this move by Macquarie could push other lenders to examine the competitiveness of their fixed rates in the run-up to the next RBA meeting.
‘At the moment, most borrowers are choosing to maintain a variable rate, most likely in the hope that we will see a flurry of cash rate cuts providing relief in the coming months.
Macquarie Bank is cutting fixed interest rates

The 13 RBA hikes in 2022 and 2023 were the most aggressive since the late 1980s
‘If you have a mortgage, don’t count on there being a multitude of cuts in quick succession. Although it is very likely that there will be at least one interest rate cut this year, not even the RBA knows exactly how many there will be.
The RBA’s 13 hikes in 2022 and 2023 were the most aggressive since the late 1980s.
The most competitive fixed mortgage rates currently available include a one-year rate of 5.59 from Police Bank, a two-year rate of 5.49 offered by Easy Street, Bank Vic and Community First Bank, and a three-year rate from 4.99 from SWSbank. .
Macquarie Bank also offers significantly lower fixed mortgage rates compared to the big four banks.
For a one-year term, Commonwealth Bank has the highest rate at 6.39, followed by NAB at 6.29, ANZ at 6.14, Westpac at 6.09 and Macquarie at 5.69.