ANZ has increased most of its fixed-term home loan rates while reducing its six-month rate, becoming the latest major bank to respond to rising wholesale interest rates.
The country’s largest lender will lift its 18-month and two-year fixed rates by 0.20%, while its 3-, 4- and 5-year rates will each rise by 0.30%.
At the same time, the bank’s 1-year fixed special remains unchanged at 4.49%, a three-year low.
The bank has cut its six-month fixed rate by 0.10%, taking the special rate to 4.69%, its lowest level since June 2022.
The move mirrors similar pricing changes announced by Westpac last week, as banks adjust to higher wholesale funding costs despite recent OCR cuts.
Grant Knuckey, managing director personal banking at ANZ, said wholesale interest rates have risen sharply since the bank last reduced fixed mortgage rates in October.
He said: “Wholesale interest rates have risen significantly, increasing by 33 to 77 basis points for terms 12 months and longer.” Knuckey said longer-term fixed mortgage rates are more heavily influenced by wholesale markets than by movements in the official cash rate.
ANZ also confirmed that interest rate changes have been made across its broader product set, including business lending, savings accounts and term deposits, reflecting the same wholesale market pressures.
The adjustments underline growing upward pressure on longer-term fixed mortgage pricing across the banking sector.