There were no changes to the RBA’s cash rate in November. The governor’s statement after the meeting re-introduced a mild easing bias and the quarterly Statement on Monetary Policy lowered growth and inflation forecasts yet again. Unemployment forecasts were kept steady but Glenn Stevens noted spare capacity in economy was expected to remain for some time. In addition, a speech by the governor pointed to rising mortgage rates (or a de facto tightening) but suggested this was not an immediate reason to cut rates. All in all this detracted from confidence about a second rate cut in 2016.
Cash markets lowered the probability of December rate cut to 22%. A week ago a rate cut in February was seen as a certainty but this expectation has now been pushed out to June 2016. What was seen as a good chance (72%) of a second rate cut by August 2016 is now seen as a 1 in 4 chance (24%).
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||2.15%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.75%||$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|