19 Oct – 23 Oct 2015

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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.

Cash Accounts 23102015

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CASH ACCOUNTS

ProductInt p.a.Special Cond
AMP Saver Account2.60%31 days’ notice
AMP Notice Account2.70%
ANZ V2 Plus0.50%1 dep no w/draw mth
ANZ Progress Saver2.71%Min balance $5,000
Arab Bank Online Savings2.30% Up to $500k.
Bankwest Smarter Esaver2.80%Zero w/draw pm up to $500k
BoQ Cash Man Account2.25%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.15%$250k+
CBA NetBank Saver1.85%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.80%
CUA eSaver Plus Account2.90%
Heritage Online Saver2.70%$750,000+
ING Savings Accelerator2.75%$150k+
Macquarie CMA1.90%
ME Online Savings2.25%
NAB Isaver1.90%
NAB Reward Saver3.05%1 dep no w/draw mth
Rams Saver Account3.60%$200 pm no withdrawal
Suncorp eOptions1.90%
Usaver2.31%$200 pm up to $200k
Usaver Ultra3.37%Up to $200k +$2k pm dep
Westpac eSaver1.75%
Westpac Reward Saver2.50%dep $50 and no withdrawals

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