Citi fixed rates rise after RBA decision

by Ben Abbott13 Feb 2012

Citibank's fixed rates have risen overnight, as a result of rising swap rates following the RBA decision.

Citibank's fixed rates now stand at 5.99% for 1-3 years (up from 5.75%), while four and five-year fixed rates are have been priced at 6.15% and 6.4% respectively.

Citibank head of broker distribution Aaron Milburn said that as mentioned in December 2011, Citibank had expected that fixed rates would very soon reach their lowest levels through this cycle.

He said the recent decision from the RBA to maintain the cash rate at 4.25% had meant swap rates had started to "increase rapidly".

"In a matter of three days the 3-year swaps increased by over 30 basis points; this meant cost of funds for fixed rates have started to rise and Citibank has adjusted its rates to reflect this," he said.

"Citibank’s fixed rates continue to be very competitive in the market, with other lenders making cuts only to align to our current rates," he added.

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