I have a magic octopus in a tank in my spare room that can predict the future.
Thus far he has been 86.3% right.

Yes - kinda, but the rates move slightly differently up versus down.

Banks always price for what they see as the future, to ensure they keep making money. So if anything they set the rates higher than what they think, particularly as they price further out. [}:)]

In a falling market, banks will delay dropping the fixed interest rates to maximise profit. But if you see a fixed interest rate cut you can be sure that the rate they have predicted will actually be lower than their offered fixed rate.

In a rising market you can be sure that the offered rate will be ratcheted up more frequently and to a number that is higher than what they predict to make sure they maximise profit.

Also keep an eye on how the rate changes based on the length of the loan, but keep in mind the above...

www.commbank.com.au/home-loans/fixed-rate.html

Think of a bank as a casino, the odds are always tipped in their favour

poor relative said...

I have a magic octopus in a tank in my spare room that can predict the future.
Thus far he has been 86.3% right.

Do you lick the magic octopus and then you see the future, or does it just tell you in your long chats together?
I think cane toads are good for the first option.
Octopi are better for the second as they are real conversationalists, as you'd know

Oh, and by the way, CMC, PR and GOTB are all right...

You can look at the rates to get an idea of what the bank's magic octopus is predicting, but the bank will still squeeze or stretch the timing to maximise profits...