There was almost no domestic economic data released this week except for May private sector credit which was released on Thursday. Loan growth fell back to 6.5% but it has been around the 6%-7% level for some time now. Investor housing credit growth, which is of concern to the RBA, came in at 6%, well under the 10% red line.
In the absence of any primary domestic data, cash markets decided a bit of fine tuning was required for its probability assumptions about future official rate changes. The probability of a 25bps rate cut were trimmed back for the months up to June 2017 but increased for the months afterwards. A November rate cut is still fully priced in and another reduction on top of that is viewed as nearly a 50/50 chance by June 2017. What is somewhat concerning for the economy is the cash market sees no sign of the official rate turning up in all the months out to November 2017.
Westpac’s Reward Saver account reduced its rate by 15bps. The RAMS Savers Account retains the mantle for the highest rate among cash accounts in the Yield Report survey.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.35%||31 days notice|
|AMP Notice Account||2.45%|
|ANZ Progress Saver||2.26%||Min balance $5,000|
|Arab Bank Online Savings||2.05%||Up to $500k.|
|Bankwest Smarter Esaver||2.45%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||1.80%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.75%||$250k+|
|CBA NetBank Saver||1.50%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||2.35%|
|CUA eSaver Plus Account||2.85%|
|Heritage Online Saver||2.45%||$750,000+|
|ING Savings Accelerator||2.50%||$150k+|
|ME Online Savings||1.55%|
|NAB Reward Saver||2.95%||1 dep no w/draw mth|
|Rams Saver Account||3.15%||$200 pm no withdrawal|
|USaver||2.06%||$200 pm up to $200k|
|USaver Ultra||3.12%||Up to $200k +$2k pm dep|
|Westpac Reward Saver||2.10%||dep $50 and no withdrawals|