Now, however, they have bowed to market pressure: their 3-year fixed now stands at 3.39%, their 4-year at 3.79% and their 5-year fixed at 3.99%.
The movement in the shorter-term fixed rates was less dramatic, with thirty points added to the 2-year fixed and just 10 points added to 1-year fixed. They now stand at 2.49% and 2.89% respectively.
Today’s moves make ANZ the highest of the Big Four in the longer term fixed rate categories, though they are still joint cheapest in variable along with Westpac.
“ANZ’s hikes come as no surprise,” said Sally Tindall of RateCity. “The cost of funding is on the rise and it’s impacting the bank’s profit margins.”
“The big banks are in a tricky position. They still want to chase competition, but the rising cost of funding is making it impossible to offer low fixed rates.
“ANZ previously had some of the most competitive big four bank owner-occupier fixed rates, however, today’s hikes put them at the back of the big four pack.
“The majority of variable rate changes are still cuts but this trend is starting to slow. Since the start of the year, 15 lenders have cut at least one variable rate, however, eight banks have hiked.
“We expect this trend to reverse as we get closer to the next cash rate hike.”
