The rationale behind the major banks’ moves to increase fixed rate home loans needs greater clarification according to the Real Estate Institute of Australia (REIA).
REIA president David Airey said the banks needed to explain why they were moving out of line with the RBA’s efforts to decrease interest rates.
“The RBA does not cut interest rates without reason, they are doing what they see fit to take the financial pressure of households around Australia and to address the global economic crisis,” he said.
Yesterday CBA increased its fixed rate home loans by as much as 45 basis points while Westpac, one day prior, moved its fixed rates similarly.
NAB hiked its fixed rates last week while ANZ’s fixed rates were already the highest of the major banks.