Banks are continuing to independently drop interest rates outside of Reserve Bank of Australia cuts.

Although the RBA does not meet to decide interest rates again until mid-May, many are already predicting it will cut rates again.

In the lead up to the ANZAC Day long weekend, eight banks dropped their fixed rates for new customers and three dropped variable rates, according to Canstar.

That makes 18 lenders that have dropped interest rates in April. All four big banks are tipping a cash rate cut in May.
Macquarie Bank now has the lowest fixed rate for new customers at 5.19% for two and three-year fixed terms.
Canstar data insights director Sally Tindall expects more cuts before the RBA meets on May 20. “We tend to see fixed rate changes ramp up in the lead up to an RBA meeting where there’s a high expectation of a change,” she says.

“The possibility of another cash rate cut in May is very much on the cards.” The latest Consumer Price Index data released this week shows headline inflation remains steady at an annual rate of 2.4% while the RBA’s preferred measure of trimmed median inflation is now 2.9% bringing it within the RBA’s target band for the first time in three years.

Many economists believe this drop means an interest rate cut is certain when the RBA Board meets later in May. Canstar data insights director Sally Tindall expects more cuts before the RBA meets on May 20. With inflation slowly easing and economic growth subdued, lenders appear to be jostling for market share early.