Perhaps. But dropping your 5 year fixed rate, first, to lure in...

Perhaps. But dropping your 5 year fixed rate, first, to lure in the suckers, before then reducing your 1 and 2 year fixed rates is a very clever strategy...particular when the tactic is accompanied by headlines that scream " first time ever that 5 year rates fall below 5%!"

So, after the big four have signed up the naïve for a 5 year fixed rate, I think you'll see some further reduction in the 1 and 2 year fixed rates over the coming weeks and months.

As I have already said: hold your ground. Time is on the side of the borrower not the banks.