Will interest rates drop ?

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From: Jeanette .


Does anyone think that fixed rates will drop with this latest .5% drop by the Reserve Bank? I heard on the news that major banks had passed on the drop immediately but when I checked Cannex this morning (with rates as at 5.4.01), I couldn't see that the fixed rates had dropped.

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Jeanette

Variable rate lowering usually passd on within a couple of days.

Fixed rates usually take a little longer to move. Do not necc expect fixed rates to come down by .50 % either. Some will, but many will not since in some rates there was already some expectation built in.

Interesting to see if the 6 month fixed rates for NAB and ANZ come down to 4.5 %

Regards

Rolf