- Macquarie Bank slashing fixed rates
A major bank will start slashing fixed rates in a sign the major lenders are expecting big rates cuts in 2025.
Macquarie Bank is cutting its two-year fixed rate to 5.39 per cent on Thursday by 20 basis points, down from 5.59 per cent for owner-occupier borrowers with a 30 per cent mortgage deposit.
This is now Australia’s lowest fixed rate with the 30-day interbank futures market expecting the Reserve Bank of Australia to cut rates four times in 2025.
Macquarie Bank’s rate is much lower than the Commonwealth Bank’s equivalent 6.29 per cent rate for those paying off principal and interest.
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 is expecting her board to cut rates by 100 basis points next year.
Expectations of big rate cuts means the banks are now offering lower fixed than variable rates.
A major bank will start slashing fixed rates in a sign the major lenders are expecting big rates cuts in 2025
