05 Oct – 09 Oct 2015

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The RBA kept rates unchanged at its monthly board meeting which was generally expected, with the vast majority of economists thinking there will not be a rate cut before 2016. The statement from the meeting was barely changed from the previous meeting and was seen to provide little in the way additional guidance as to the Bank’s thinking.

In a reverse of previous weeks, predictions for future cash rates have moved slightly higher as markets factored in recent economic releases and forecasts by domestic banks. Markets are pricing a 25bps rate cut to 1.75% by April as a certainty and a further 25bps rate cut to 1.50% by August as a 45% chance. YieldReport’s article, “ANZ expects two more rate cuts” outlines the broad reasons behind the market’s view but interestingly the RBA seems to be a reluctant rate cutter. Its rhetoric suggests it would prefer to wait for a US rate move and to see whether the Australian economy is growing enough before changing the current rate setting. There is also the view that the RBA likes having more rate cut ammunition in its armoury in case the economy worsens significantly.

There were two changes to our cash accounts table last week. CUA eSaver plus account was down 10bps to 2.90% and NAB iSaver was down 10bps to 1.90%

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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 Esaver3.00%Zero w/draw pm up to $500k
BoQ Cash Man Account2.15%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.75%$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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