It’s the kind of news that stirs mixed feelings — a bit of relief for savers, a bit of dread for borrowers. With the Reserve Bank’s first meeting of the year just around the corner, ANZ has made a move that’s turning heads in the financial world.
ANZ Raises Savings Account Rates
ANZ Bank has increased interest rates across several of its savings accounts, making it the first of Australia’s big four banks to act ahead of the Reserve Bank of Australia’s (RBA) February meeting. The decision has been described as a pre-emptive step in what could be a tightly contested call for the central bank — to hold or to hike.
Customers using ANZ’s Online Saver account will now see their maximum rate climb by 0.10 percentage points to 4.85%, while the Progress Saver account will lift to 4.60%. The adjustments take effect immediately for new and existing customers, offering a modest boost to households with savings balances.
For savers, it’s welcome news after months of flat returns. But for borrowers already under pressure from high mortgage rates, the move raises the question: is another rate rise on the horizon?
RBA Faces a “Close Decision”
The timing of ANZ’s announcement is no coincidence. The RBA is set to hold its first cash rate meeting of 2026 next week, and economists say the outcome is finely balanced. Some argue that recent inflation data suggests there’s still work to be done, while others believe rate settings have already done enough to cool the economy.
Either way, the move signals that banks are still positioning for higher-for-longer rates, even as consumers hope for relief. ANZ’s update is being seen as a cautious reflection of that uncertainty — rewarding savers while keeping the pressure on borrowers.
Savers Benefit, Borrowers Brace
While the boost to savings rates will help those with money tucked away, the reality is that many Australians no longer have much left to save. Household savings have fallen sharply since the pandemic, as cost-of-living pressures and rising repayments continue to erode disposable income.
Data from the Australian Bureau of Statistics (ABS) shows household savings ratios are now at their lowest point since 2008, reports Yahoo Finance. That means the rate increase, while positive for some, won’t reach the majority who are still juggling debt.
The Bigger Picture
If the RBA decides to hold next week, it would mark a sign of stability after one of the most aggressive tightening cycles in decades. But if inflation surprises again, further rate hikes can’t be ruled out — and that could stretch mortgage holders even further.
For now, ANZ’s move sends a clear message: the rate debate is far from over. Savers may have reason to smile, but for borrowers across Australia, the financial tightrope remains just as shaky.
