Move makes NAB the first major lender to adjust fixed rates since the RBA's May rate increase
NAB has raised its short-term fixed rates by 0.15 percentage points, becoming the first of the big four banks to adjust fixed rates following the Reserve Bank of Australia's May cash rate rise.
The increase comes as markets broadly anticipate a cash rate hold at the RBA's June meeting, though a number of economists have flagged the possibility of further rises beyond June, with rates expected to remain elevated for an extended period.
Among the major banks, rate tracking by Canstar.com.au shows Westpac continues to offer the lowest fixed rate of the big four — its two-year loan at 6.29%.
| Big four banks' lowest fixed rates | ||||
| CBA | Westpac | NAB | ANZ | |
|---|---|---|---|---|
| 1-year | 6.49% | 6.39% | 6.49% | 6.34% |
| 2-year | 6.34% | 6.29% | 6.54% | 6.39% |
| 3-year | 6.59% | 6.49% | 6.49% | 6.54% |
| 4-year | 6.64% | 6.69% | 6.49% | 6.54% |
| 5-year | 6.79% | 6.69% | 6.49% | 6.59% |
| Source: Canstar.com.au | ||||
"NAB's relatively minor hikes to fixed rates are a sign that lenders aren't convinced the rate hiking cycle is over," said Sally Tindall, data insights director at Canstar.com.au. "Fixed rates are often a window into what banks think is coming next. NAB's decision to lift its short-term fixed rates suggests it's not ready to rule out further rate rises, even though the RBA will almost certainly hit pause next month.
"Competitive fixed rates are fast becoming a thing of the past. At the start of the year there were 83 lenders offering at least one fixed rate under 6%. Today there are just three. In comparison, there are still over 40 different lenders with at least one variable rate under 6%, following the RBA May hike.
"Borrowers hoping for a reprieve will be waiting for a while. The reality is, rates are likely to remain high for the foreseeable future and could well get one or two notches tighter."
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