Big four banks lower fixed rates
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The big four banks have dropped their fixed interest rates as the pressure on funding costs ease.
It is the second time in less than a month that the Commonwealth Bank, National Australia Bank, ANZ and Westpac have lowered their fixed rates.
Macquarie Bank interest rate strategist Rory Robertson says some of the rates banks pay to fund their loans have eased.
"There was a bit of an inflation scare in June when petrol and oil prices were punching to the sky," he said.
"[But] in the past month or two, oil and petrol prices have come down quite a bit and so we're seeing some of the market's inflationary fears subsiding, and alongside that we're seeing some of the longer-term interest rates subsiding," he said.
The Reserve Bank is widely tipped to cut rates by 0.25 per cent when it meets next week and Mr Robertson says it is likely borrowers will feel the full effect of that cut through lower variable rates.
"A couple of major banks have said they expect to be able to follow the Reserve Bank's 0.25 cut with 0.25 cuts in headline mortgage rates," he said.
"I assume competitive pressures will see most of the major lenders follow the Reserve Bank in cutting by about 0.25."
