July 2016

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At the July board meeting the RBA left the cash rate at 1.75%. Most economists expected the central bank to wait for June quarter CPI figures (released in late July) before moving to cut rates at the August meeting. The statement from the meeting suggests, what ANZ referred to as, a “soft easing bias”.  The economy is far from perfect but unemployment is under 6.00% and likely to go lower if employment advertisements are anything to go on. However, the consensus among economists is the low level of inflation is dominant in the RBA board’s thinking. When the meeting’s minutes were released economists were quick to point to the part which referred to “further information …available over the following month” as a confirmation of their views the CPI figures would be the trigger the RBA require for a rate cut.

Cash markets had factored in an August cut for some time and the data published during July did not change that view. The probability of a cut at the August meeting of the RBA Board implied by cash futures was 68% and by November a rate cut is viewed as a 100% certainty. It didn’t not stop there, either. Quite a few in the markets expect another rate cut down to 1.25% and cash contracts have factored in a 2 in 3 chance of this happening by May 2017.



ProductInt p.a.Special Cond
AMP Saver Account2.35%31 days’ notice
AMP Notice Account2.45%
ANZ Premium1.75%
ANZ Progress Saver2.26%Min balance $5,000
Arab Bank Online Savings2.05% Up to $500k.
Bankwest Smarter Esaver2.45%Zero w/draw pm up to $500k
BoQ Cash Man Account1.80%Limit 1 w/draw pm
BoQ Bonus Interest Savings2.55%$250k+
CBA NetBank Saver1.50%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.20%
CUA eSaver Plus Account2.85%
Heritage Online Saver2.45%$750,000+
ING Savings Accelerator2.15%$150k+
Macquarie CMA1.65%
ME Online Savings1.55%
NAB iSaver1.55%
NAB Reward Saver2.95%1 dep no w/draw mth
Rams Saver Account3.15%$200 pm no withdrawal
Suncorp eOptions1.60%
USaver2.06%$200 pm up to $200k
USaver Ultra3.12%Up to $200k +$2k pm dep
Westpac eSaver1.50%
Westpac Reward Saver2.10%dep $50 and no withdrawals