June 2016

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The RBA left cash rates on hold, a decision expected by many. What seemed to surprise observers though, was the lack of an explicit easing bias in the RBA’s statement which accompanies each month’s decision. Even so, the cash market is convinced the RBA will cut rates in August a potential decision which became more favoured by markets in the aftermath of Brexit. Economists expect the RBA to wait until June quarter CPI figures are released in July and then make its move. Cash markets are of the same view and prices there imply a 5 in 6 chance of the RBA doing so. This is despite NAB’s May business survey suggestion of a certain degree of robustness in the commercial sector while Australian consumers were still optimistic on balance according to the latest Westpac-Melbourne Institute consumer survey. Unemployment was steady at 5.7% but full-time jobs was stagnant and all the growth in employment came from part-time positions. All of which provides an environment in which rates were more likely to fall than rise.

cash-rate-jun16

CASH ACCOUNTS

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 Savings2.75%$250k+
CBA NetBank Saver1.50%$200pm dep, $100k lim, 1wd pm
CBA Goal Saver Ac2.35%
CUA eSaver Plus Account2.85%
Heritage Online Saver2.45%$750,000+
ING Savings Accelerator2.50%$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