Big four bank 'jumps the gun' with fixed rate hike in anticipation of double RBA blow

ANZ is the latest lender to raise its fixed mortgage rates in anticipation of the Reserve Bank's interest rate decision next week.

The big four bank moved to raise fixed rates by 0.25 percentage points in an early blow to borrowers ahead of what is expected to be a double RBA rate hike in March and April.

This makes ANZ's most affordable fixed-rate 5.99 per cent for one-year terms, 6.04 per cent for two years and 6.14 per cent for three-year terms.

READ MORE: Expats have been told fly home now. But Jess is staying in Dubai

ANZ is not alone in jumping the gun with a tactical fixed-rate hike before the RBA makes its move on March 17.

According to Canstar, 26 lenders have hiked at least one fixed rate in the last two weeks.

Among them are Bankwest, Ubank, Heritage Bank and RACQ.

The average two-year fixed rate is now 0.21 percentage points higher than the average variable rate, Canstar research found.

LIVE UPDATES: Iran reveals underground 'missile tunnels

READ MORE: Qantas agrees to $105 million settlement over COVID-19 flight credits

"ANZ has jumped the gun on the RBA, lifting fixed rates just four days out from the central bank's next decision," Canstar.com.au data insights director Sally Tindall said.

"Fixed rates are typically the early warning signal for where rates are headed. When they start creeping up before an RBA meeting it's a sign lenders are pricing in a hike before it materialises.

"The fact that the majority of ANZ's fixed rates now sit above 6 per cent will feel like a psychological shift for borrowers."

ANZ this week also followed the other big four banks in predicting triple rate hike pain for Aussie borrowers.

CBA, Westpac and NAB yesterday shifted their cash rate predictions due to inflation running too hot, a stretched labour market, and the war in the Middle East – which is likely to add to inflation.

READ MORE: Australia's No.1 retailer named as last year's winner plunges

All four big banks now anticipate the Reserve Bank will increase the cash rate 25 basis points when it meets next Tuesday, and by the same margin at the following meeting in May.

The RBA increased the interest rate by 0.25 per cent at its most recent meeting on February 3, to 3.85 per cent.

A triple hike would bring the cash rate to 4.35 per cent.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

• Download the 9NEWS App here via Apple and Google Play
• Make 9News your preferred source on Google by ticking this box here
• Sign up to our breaking newsletter here