All four major lenders moved ahead of the cash rate, anticipating the central bank’s decision to abandoned their target of moving the cash rate in 2024.
Now, Westpac has gone further, raising their 3, 4 and 5-year fixed rates. The three-year rate, which would expire in 2024, has gone up a huge 21 basis points to 2.29%, a significant departure from the ultra-low rates era of just a few months ago.
4-year and 5-year rates have gone up 10 points, now sitting at 2.69% and 2.99% respectively. The two-year rate remained the same.
The rate rises were reflected at Westpac’s subsidiaries St George Bank and Bank of Melbourne, who also raised all fixed rates, but cut their two-year variable rates.
Most notably, the three-year fixed rates went above the 2% barrier, jumping a huge 31 points to 2.29%. 4- and 5-year rates rose 20 points to 2.69% and 2.99%, in line with the Westpac rates.
The cut in variable rates, from 2.24% to 2.14%, is in line with other rate changes in the industry, which have largely gone down in recent weeks.
According to RateCity, 27 lenders have cut their variable rates in the last month, with only 2 lenders raising their flagship prices.
