ANZ, Macquarie Cut Fixed Rates as Big Four Diverge, June 06

Two of Australia’s biggest banks broke ranks on June 05. ANZ cut its 2-year and 3-year fixed home loan rates by up to 0.10 percentage points, bringing its lowest rate to 6.29%. Macquarie Bank slashed rates by up to 0.45 percentage points, dropping its lowest 3-year rate to 6.09%. The moves go against the broader trend, with Westpac hiking rates yesterday and NAB raising them last Friday. This divergence reflects deep uncertainty about the RBA’s next move.

Why the Rate Cuts Stand Out

ANZ and Macquarie’s cuts are a shock reversal. After months of fixed rate hikes across the banking sector, these two lenders have shifted strategy. Macquarie now offers the lowest fixed rate at 6.09% for 3 years, followed by ANZ at 6.29% for 2 years. The cuts put both banks ahead of their big four competitors on price. Yet the broader market remains in hike mode. Westpac hiked select fixed rates by 0.05 percentage points yesterday, while NAB hiked by 0.15 percentage points last Friday.

Fixed Rates No Longer Competitive

After months of hikes, fixed rates have become far less attractive than variable rates. At the start of 2026, 83 lenders offered at least one fixed rate under 6%. Today, only two do. This dramatic shift reflects the RBA’s rate hiking cycle, which has pushed fixed rates higher and made them less competitive for borrowers. The trend has forced many households to reassess their borrowing options.

Banks Divided on RBA’s Next Move

The rate cuts highlight conflicting forecasts among Australia’s biggest banks. Westpac expects two more cash rate hikes in August and September. NAB forecasts one further hike in August. But ANZ and CBA believe the rate hiking cycle has peaked. CBA is pencilling in two cash rate cuts in May and August next year. The RBA is expected to hold rates at its June meeting in 11 days, but its next move remains highly contested.

What This Means for Borrowers

ANZ and Macquarie’s cuts offer relief to borrowers locked into fixed rates. However, the moves signal that banks are hedging their bets on the RBA’s direction. With Meyka rating NAB at B- and CBA at B-, both on hold, the data points to limited upside for bank stocks in the near term. Borrowers should compare rates across all lenders, as the gap between the cheapest and most expensive fixed rates has widened significantly.

Final Thoughts

ANZ and Macquarie’s rate cuts break a months-long hiking trend, signalling banks are preparing for a potential RBA pause. With only two lenders now offering sub-6% fixed rates, borrowers face a tightening market. The divergence between banks on future RBA moves adds uncertainty to the outlook.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.