"Well the banks don't think so they are desperate to get...

"Well the banks don't think so they are desperate to get borrowers onto fixed rates."

The reason why they like fixed mortgage contracts is because they can raise cheaper long-term wholesale debt.

There's a lot going on behind the scenes when it comes to setting the price of a mortgage. The cash rate set by the RBA is not the only influence. Fixed term deposit rates already started to increase by a lot.

Moody's also lowered its outlook to negative which will increase the cost of wholesale debt. Eventually banks will have to pass on these costs to mortgage holders.