While the Reserve Bank board members consider their options ahead of Tuesday’s meeting, lenders continue to adjust home loan interest rates – sometimes moving in both directions at once.

Over the past decade the convention of waiting for the RBA to change the cash rate and moving rates in response has all but disappeared.

Banks have made it clear that the cash rate is only one factor influencing their cost of funds and they are prepared to move rates to maintain margins at any time, given changes to their overall funding costs and competitive pressures.

Some commentators continue to refer to these moves as “out-of-cycle” rate changes but the idea that there is a cycle dictated by RBA cash rate changes is now almost meaningless.

The dynamics of interest rate setting are very different to what they were a decade ago and it will be interesting to see how lenders respond if the RBA raises the cash rate tomorrow or next month.

According to comparison site Canstar, in the past week Adelaide Bank, Aussie Home Loans and HSBC Bank Australia raised variable rates on 26 products by an average of 9 basis points.

HSBC also launched a promotional offer, cutting the variable rate on its interest only home loan.

Eight lenders increased fixed home loan rates by an average of 58 bps.

The average variable interest rate for owner occupier paying principal and interest is now 2.98 per cent, with the lowest rate in the market 1.79 per cent.

The average variable rate for investors paying principal and interest is 3.35 per cent and the lowest rate of 2.04 per cent (for loan-to-valuation ratios up to 60 per cent).

The average three-year fixed rate for owner occupiers paying P&I is 4.02 per cent, with the lowest rate 2.79 per cent.