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Thank you for the replies, especially Redom. Interesting point about the fixed rates not being any kind of expectation of future <5 year rates, seems counterintuitive, at least to an economic illiterate like me.

Not sure how good this guy is with his predictions but it makes for interesting reading http://knowledgesource.com.au/what-do-the-banks-know-that-we-dont/#fromemail If he's right, interest rates will drop further. Increases are unlikely as it will bring the Aus dollar up and this is not...