Inflation may be creeping up faster than expected but the Reserve Bank is holding firm on not lifting interest rates next year.
The RBA’s quarterly statement on monetary policy says that, while inflation had risen in the September Quarter, it still does not plan to lift the official rate until 2024.
Housing activity is tipped to remain strong as interest rates remain at historical lows and as banks cut rates to lure borrowers.
ANZ this week offered borrowers with deposits of 30% or more a 0.43% cut to rates for loans paying principal and interest. Investors will be eligible for a 0.33% reduction. Borrowers with a slightly lower deposit, of between 20% and 30%, are eligible for a 0.23% cut if paying principal and interest.
The ANZ announcement puts it in line with what is being offered by the other big banks.
RateCity research director Sally Tindall says while risky lending is on the rise, it’s no surprise to see ANZ follow CBA and Westpac and offer lower rates to ideal borrowers with big deposits.