The first of Australia’s big banks has moved to drop fixed interest rates a month ahead of the Reserve Bank of Australia’s first meeting of 2025.

This week Macquarie Bank dropped its one-year fixed rate from 5.85% to 5.69%. Both of its two-year and three-year fixed rates have been dropped at the same time by 14 basis points. The RBA meets for the first time in 2025 on February 18.

Canstar data insights director, Sally Tindall, says the drop may “ignite” further competition in the fixed-rate market. “The fixed-rate market has been relatively quiet over the summer break, with more lenders hiking these rates in the month of December than cutting,” she says. “However, this move from Macquarie could push other lenders into taking a look at the competitiveness of their fixed rates in the lead-up to the RBA’s next meeting.”

The Commonwealth Bank has the highest one-year fixed term rate of 6.39%, followed by NAB, 6.29%, ANZ, 6.14% and Westpac, 6.09%.