Australia's biggest bank has hiked its fixed home loan rates, in a worrying sign that could forecast an interest rate increase by the Reserve Bank.
Commonwealth Bank yesterday increased owner-occupier rates by up to 0.7 percentage points, to make its lowest fixed loan rate now 5.79 per cent for a two-year term.
Macquarie Bank also, on the same day, lifted rates by 0.25 per cent across all fixed loan terms, bringing its lowest rate to 5.59 per cent for a one-year term.
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Macquarie previously increased its rates on December 5.
As a result of these changes, NAB now offers the lowest fixed rate out of the major banks, at 5.39 per cent for both one-year and two-year terms.
"The move follows on from hikes from the other majors in December as the fixed rate market continues to factor in the possibility of a higher cash rate," Canstar data insights director Sally Tindall said.
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The RBA next meets to determine the cash rate on February 2.
It has held interest rates at 3.6 per cent for several months now, amid worries over stubborn inflation.
Tindall said Canstar expected banks to continue hiking rates ahead of the next meeting.
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"The fixed rate tide is on the way out, but there's still a smattering of lenders still offering rates under 5 per cent. How long they'll hold on is a different question," she said.
"Canstar data show there are just 16 lenders offering a rate under 5 per cent - a significant drop from 27 a month ago.
"If this trend continues, as we expect it to, the list of lenders offering fixed rates starting with a '4' could be down to single digits by the time the next RBA meeting comes around."
Rate tracking by Canstar showed a total of 34 lenders had hiked at least one fixed rate in the past month.
The big banks have offered mixed predictions for the cash rate in the new year, but both CBA and NAB have predicted it will again be increased.
Others at the end of last year suggested it would continue to hold steady, but without further cuts.
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