ANZ has followed its big four rivals in cutting its fixed-rate mortgage rates, but lenders have been warned they're in for a hammering if they refuse to pass on any cut to the cash rate in the coming months.
ANZ cut between 0.20 per cent and 0.60 per cent from owner-occupier and investor fixed loans on Friday, following recent cuts by Commonwealth Bank, NAB and Westpac.
Macquarie Bank, the nation's eighth largest home lender, also cut fixed rates on Friday, while slashing variable rates on a range of products by up to 0.51 per cent.
The RBA kept the cash rate at its long-term record low 1.5 per cent this week but is expected to cut soon after confirming its downgraded near-term economic growth forecasts and trimming its mean inflation targets.
Canstar finance expert Steve Mickenbecker said the banks were trying to get ahead of the Reserve Bank curve, but they should prepare for a backlash if they left it at that.
He said refusing to pass on a rate cut - especially after several banks lifted their rates in September - would be hammered by an already hostile public.
"(The banks) are under a lot of political pressure, particularly with the royal commission, and refusing to pass on what would be the first cash rate cut (since the inquiry) and also the first cash rate cut in nearly three years ... it would not be received well," Mr Mickenbecker said.
"You would imagine a public backlash - especially if there is a new, emboldened Prime Minister looking to lash out at them a bit."
RateCity.com said the rate adjustment by ANZ was no shock, as they were the last of the big four to do so
"Some of their fixed rates were sticking out like a sore thumb," research director Sally Tindall said.
Other major players that have made changes to fixed terms since January 1 include AMP, Bank of Queensland, and Suncorp.
Mr Mickenbecker said the banks were trying to attract new business amid the housing downturn.
"Demand in this market has come right off... so they've got to do something to compete for that diminishing share," he said.
"(They) are competing hard for in-market borrowers who tick the credit boxes. Most are doing it through reducing fixed rates because it will not affect their margins."
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