ING Hikes Rates as RBA Cash Rate Hike Looms

ING, a major bank in Australia, has raised its fixed interest rates for owner-occupier and investor home loans by 0.2 per cent. This decision will affect all fixed-rate loans that settle from today.

Richard Whitten, money and home loans expert at Finder, believes this move is a clear sign that the Reserve Bank of Australia (RBA) may soon raise the cash rate. 'Banks are experts at forecasting and setting interest rates in line with the market,' he said.

'They lower fixed rates when they anticipate interest rates to fall further, and lift them when they expect rates to rise.'

The RBA's next meeting is scheduled for September 28-29. At its previous two meetings, the board kept the cash rate steady at 4.35 per cent after three consecutive increases earlier in the year.

Citi senior economist and analyst Faraz Syed has predicted two more rate rises before 2027 rolls around, driven by a two-speed economy where inflation remains stubbornly high.