ING Raises Mortgage Rates Amid Rising Expectations for RBA Interest Hike

ING Australia has raised its fixed mortgage rates for owner-occupiers and investors by 20 basis points, effective from Wednesday. This change comes just 13 days before the Reserve Bank of Australia (RBA) decides whether to lift its cash rate again.

The increase applies across ING's fixed-rate home loans, while variable-rate products remain unaffected. The lender is charging more for certainty over the next one to five years, ahead of the RBA's September 29 decision.

Citi has shifted towards expecting two 25-basis-point increases this year and a terminal cash rate of 4.85%, up from its previous forecast of 4.60%. Reuters reported on September 11 that swaps embedded 33 basis points of tightening by November and 40 by December, with a 90% chance of a September increase.

The Australian dollar was little changed near US$0.7135 at 9:24 p.m. AEST on Wednesday, while the S&P/ASX 200 had closed 0.61% lower at 8,696.5.