The country's largest bank has increased most of its fixed-term home loan rates while cutting its six-month rate, responding to a rise in wholesale interest rates.
ANZ will increase its 18-month and two-year fixed home loan rates by 20 basis points (0.20%). Three, four and five-year rates will each rise by 30 basis points (0.30%).
Meanwhile, a one-year fixed-rate special remains at a three-year low of 4.49%.
But the bank's six-month rate will be reduced by 10 basis points (0.10%) — taking ANZ's special rate to 4.69%, the lowest it has been since June 2022.
The bank's changes follow Westpac, which made similar moves last week.
ANZ's personal banking managing director Grant Knuckey said wholesale interest rates have risen markedly since the last fixed rate reduction in October.
"Wholesale interest rates have risen significantly, increasing by 33 to 77 basis points for terms 12 months and longer."
The changes also include increases in some of ANZ’s term investment rates.
One-year deposits are rising 10 basis points to 3.50%, 18-month deposits climb 20 basis points to 3.6%, and longer-term deposits increase by up to 30 basis points.
This follows the Reserve Bank’s cut to the official cash rate, when it signalled a pause in the easing cycle, indicating the rate would remain at 2.25% for the foreseeable future.
"Changes to the OCR affect floating mortgage rates more directly," Knuckey said.
"Changing expectations about future OCR decisions influence wholesale rates, causing fixed mortgage rates to go up or down."
A spokesperson for the bank said when reviewing interest rates, ANZ considered factors such as the OCR and "changes in wholesale interest rates and balancing the needs of borrowers and savers".
The changes take effect on Tuesday for ANZ's fixed home loan and term deposit products.
Westpac also hikes some rates
Westpac made similar moves last Tuesday, hiking rates on two- to five-year terms by 30 basis points while slashing its six-month special by 20 basis points to 4.69%.
"We're holding back some of the increase in wholesale borrowing costs to customers, while also offering great value for those looking for short-term flexibility with our new six-month advertised special rate," said marketing managing director Sarah Hearn.
Westpac's two-year special rate climbed to 4.75%, while three-year, four-year and five-year terms rose to between 5.05% and 5.29%.
The bank also increased term deposit rates for periods of one year or longer by between 10 and 30 basis points.
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