NAB has made the next move in the ongoing interest rate sage by adding a full half a percent to their 3-year fixed. The price now stands at 2.79%.
The Big Four bank also stuck 30 points onto their 4-year fixed, taking it to 2.89%, and 25 points to their 2-year fixed, which now stands at 2.34%.
NAB joins ANZ and CBA in adding massively to their longer-term prices in advance of an expected increase in the cost of funds that is likely to kick in towards the start of next year on the bond market.
ANZ took 43 points off their rate on Monday, while CBA made their move last Friday.
Last Tuesday, the Reserve Bank of Australia abandoned the 2024 target for a cash rate rise, officially ending the ultra-low rate environment and signalling to the market to expect the basic interest rate to rise sooner rather than later.
The only holdout fixed rate under the symbolic 2% marker is the 1-year, which is still stuck at 1.99%, indicating that NAB thinks a cash rate move might come around this time next year.
According to RateCity, 41 lenders have hiked their 3-year fixed in the last month, indicating that the market is widely anticipating 2024 as the absolute latest that the cash rate will change.
35 lenders have moved their 2-year fixed upwards as well, suggesting that the bulk think the cash rate will rise in 2023. 2022 is still expected to be too soon for the RBA to make any call.