The big moves in the cash markets recently all happened in early November after the RBA downgraded growth and inflation forecasts. This week changes were minimal. Q3 economic data relating to construction and trade data did not really have any material effect on the cash rate market’s thinking but on Thursday the capital expenditure figures were published and showed a marked weakness in forecast business spending. This surprised markets but changes to cash rate forecasts were fairly muted. While cash markets are still factoring in a good chance of a rate cut in 2016, the probabilities attached to a cuts in any given month have generally increased slightly. A rate cut chance in the months of February to April sit at around 40% but rise to 68% for the months of August through to November. It is worth keeping in mind the cash market has exhibited a tendency in the past to dramatically change these probabilities on the strength of one piece of economic news and in mid-October the likelihood of a second rate cut to 1.50% was being priced at an 88% chance.
There were no changes to our cash accounts table over the course of the week.
Across all the cash accounts in the Yield Report survey, the average rate remains 2.41%.
|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||2.00%|
|NAB Reward Saver||3.05%||1 dep no w/draw mth|
|Rams Saver Account||3.40%||$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|