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

ANZ and Macquarie Bank cut fixed home loan rates on June 5, moving against the broader trend of rate hikes from competitors. ANZ lowered 2- and 3-year rates by 0.10 percentage points to 6.29%, while Macquarie dropped rates by up to 0.45 percentage points to 6.09% for 3 years. The cuts matter because they signal these banks expect the RBA rate-hiking cycle to end, while rivals like Westpac and NAB still expect further increases.

Two Banks Break Ranks on Rate Strategy

ANZ cut its 2- and 3-year fixed rates by 0.10 percentage points, bringing the lowest rate to 6.29% for a 2-year term. Macquarie slashed rates more aggressively, cutting by up to 0.45 percentage points to reach 6.09% for a 3-year term. These cuts put both banks at the lowest end of the market for fixed rates among Australia’s five largest lenders. The moves reverse months of hikes that dominated the sector.

Rivals Still Hiking Despite Market Shift

Westpac hiked select fixed rates by 0.05 percentage points on June 4, while NAB raised rates by 0.15 percentage points on June 2. Commonwealth Bank and Westpac both expect further RBA hikes, but ANZ and CBA believe the rate-hiking cycle has peaked. CBA forecasts two rate cuts in May and August 2027. This split view creates confusion for borrowers trying to lock in rates.

Fixed Rates Lose Competitiveness Against Variable

Fixed rates have become far less attractive than variable rates after months of hikes. At the start of 2026, 83 lenders offered fixed rates below 6%. Today, only two lenders do. Borrowers who locked in fixed rates months ago now face higher costs than those on variable rates, which track the RBA cash rate more closely.

What This Means for Bank Stocks

Meyka rates ANZ a B- (Neutral) with a 12-month forecast of A$40.49, 18.6% above the current A$34.12 price. NAB holds a B- rating with a A$48.76 target, 33.4% above A$36.59. Macquarie carries a B rating (Hold) with a A$213.64 target, 9.6% below A$236.42. The rate cuts signal confidence in lower future rates, which could boost loan volumes but compress margins if competition intensifies.

Final Thoughts

ANZ and Macquarie’s rate cuts signal confidence that the RBA’s hiking cycle is ending, while rivals expect further increases. Investors should watch whether other banks follow suit or hold firm on hikes, as this will shape mortgage competition and bank profitability in the second half of 2026.

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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.