Move reflects growing consensus on RBA monetary policy direction
ME Bank has withdrawn its two-year fixed rate product priced at 4.99% following a reassessment of market conditions in light of recent inflation developments.
The move reflects a broader trend among Australian lenders to adjust their fixed rate pricing structures in response to evolving economic circumstances.
Analysis undertaken by Canstar reveals a contraction in the pool of financial institutions offering rates beneath the 5% threshold. The figures indicate a decline from 46 lenders to 36 across the past month, demonstrating the speed with which market conditions have altered.
"If Michelle Bullock is Goldilocks, the three bears are inflation, employment and economic growth," said David Koch, economic director at Compare the Market. "They all need to be 'just right' for the Reserve Bank to move on rates, because it's such a fragile situation and one wrong step could scupper the progress we've made.
"(This week's) move from ME Bank is another sign of growing consensus our next rate cut could be a while off, and there's almost no chance of a cut in December."
Despite the withdrawal, some borrowers may still access competitively priced options. "If you've made some good progress paying down your loan, or your property value has gone up, there are still a few deals with a 'four' in front available to borrowers with a loan-to-value ratio of 70% or lower," Koch said.
"When switching to a cheaper rate could help you free up hundreds, it's really a no-brainer to check and assess your situation every few years. Be choosy like Goldilocks and find value that's just right for you."
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