NAB has become the first of the Big Four banks to cut its fixed interest rates ahead of the all-important Reserve Bank (RBA) meeting this month. The central bank is just two weeks away from deciding whether to cut, hold, or hike the official cash rate, which stands at 4.35 per cent.

But NAB is getting ahead of the game by slashing its fixed rates for certain loans by as much as 0.30 per cent. Canstar's data insights director, Sally Tindall said the move will likely see other banks follow suit in the coming days.

“The cost of wholesale fixed rate funding has started to ease slightly. This, combined with a prospective cash rate cut, should push other banks into moving on fixed rates," she said.

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“While a few banks are now starting to sharpen their offerings, fixed rates still have a way to fall before they become fashionable again with borrowers."

The fixed rates move also comes just a few days after the Big Four bank adjusted its prediction for the first RBA rate cut from May to February.

Following the release of the December quarter inflation data, NAB felt the central bank was now in a better position to finally offer mortgage relief.

“We still expect the cutting phase to be gradual, with the RBA taking the cash rate down to 3.1% by February 2026," NAB Group Chief Economist Alan Oster said.

NAB is pricing in as many as five rate cuts in the next year.

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How much have NAB's fixed rates moved?

Investor fixed-rate loans have fallen by as much as 0.30 per cent at NAB, but owner-occupier rates were more modest.

NAB’s lowest fixed rate is now 5.84 per cent for a three-year term, which is only available for owner-occupiers who are paying principal and interest with a deposit of at least 20 per cent.

The last time any of the Big Four made an adjustment to its fixed rates was back in late October, as there was speculation the RBA might have cut the official cash rate at the early November meeting.

ANZ still holds the title for the lowest fixed rate of the Big Four at 5.74 per cent for a two or three-year loan term.