01 Feb – 05 Feb 2016

Share on LinkedInTweet about this on TwitterEmail this to someonePrint this page

[private role=’subscriber’]

There were two events of notes in relation to the RBA and monetary policy. The first was the February board meeting of the bank where cash rates were left unchanged as expected. The second was the Quarterly Statement on Monetary policy, released at the end of the week. The SoMP said that “there has been a notable improvement in labour market conditions that was not anticipated at the time of the previous Statement” and that inflation forecasts “have not changed materially. Unemployment was revised lower and the Bank retained its easing bias.

Cash markets responded by reducing slightly their expectation of a rate cut in 2016 while modestly increasing expectations in November 2016 and beyond. Market pricing implied that participants are still fully factoring in a reduction in the official rate down to 1.75% by September, with a significant probability it will happen even earlier. What’s more, the odds of a second rate reduction down to 1.50% by the end of 2016 is rated at a 50% probability.

There were two changes to rates in our cash accounts table over the week. Bank of Queensland reduced its rate by 20 bps from 2.15% to 2.05% and Me bank also reduced its rate by 20bps, but from 2.00% to 1.80%.

cashrate-yieldreport-5feb
[/private]

[private role=’subscriber’]

CASH ACCOUNTS

ProductInt p.a.Special Cond
AMP Saver Account2.60%31 days’ notice
AMP Notice Account2.70%
ANZ Premium2.00%
ANZ Progress Saver2.51%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 Account2.05%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.75%$250k+
CBA NetBank Saver1.80%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.70%
CUA eSaver Plus Account2.90%
Heritage Online Saver2.70%$750,000+
ING Savings Accelerator2.75%$150k+
Macquarie CMA1.90%
ME Online Savings1.80%
NAB Isaver1.80%
NAB Reward Saver3.10%1 dep no w/draw mth
Rams Saver Account3.40%$200 pm no withdrawal
Suncorp eOptions1.85%
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

[/private]