Following Westpac’s recent move to raise residential mortgage rates, YieldReport reported on speculation that the other major banks would also raise rates. This week Commonwealth, National Australia Bank and ANZ did just that in a series of “out-of-cycle” mortgage rate rises of 15bps, 17bps and 18bps respectively. Economists now see these rises as a catalyst for an RBA rate cut, as the de facto monetary tightening by the banks may force the RBA to ease monetary conditions elsewhere, even possibly this year. However, analysis of the RBA minutes released during the week led to some questioning of this line of thinking and the odds implied by cash markets of a rate cut this year in fact lengthened.
Cash rate futures are now pricing in a 26% chance of a November rate fall, a nearly 60% chance by Christmas and with a cut by February seen as a certainty. Further, a second cut is being priced by markets as a 65% chance by May and a 74% chance by August.
There were no changes to our cash accounts table this week.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.60%||31 days notice|
|AMP Notice Account||2.70%|
|ANZ V2 Plus||0.50%||1 dep no w/draw mth|
|ANZ Progress Saver||2.71%||Min balance $5,000|
|Arab Bank Online Savings||2.30%||Up to $500k.|
|Bankwest Smarter Esaver||2.80%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||2.25%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.15%||$250k+|
|CBA NetBank Saver||1.85%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||2.80%|
|CUA eSaver Plus Account||2.90%|
|Heritage Online Saver||2.70%||$750,000+|
|ING Savings Accelerator||2.75%||$150k+|
|ME Online Savings||2.25%|
|NAB Reward Saver||3.05%||1 dep no w/draw mth|
|Rams Saver Account||3.60%||$200 pm no withdrawal|
|Usaver||2.31%||$200 pm up to $200k|
|Usaver Ultra||3.37%||Up to $200k +$2k pm dep|
|Westpac Reward Saver||2.50%||dep $50 and no withdrawals|