No one really expected the RBA to make any changes to the official cash rate at its April meeting and so no one was disappointed with the outcome. There is still an easing bias implied by its statement but perhaps this is just part of the RBA’s insurance policy where it can cut rates should future data point it in that direction. Recent data is somewhat neutral in this regard. ANZ’s job ads series levelled out but did not fall, while the Melbourne Institute’s Inflation Gauge slipped back and indicates headline inflation is back below 2%.
Markets certainly think there’s more than a good chance of upcoming rate cuts and the net effect of the latest batch of data was for cash markets to be even more confident of rate reductions this year. Prices in the cash markets implied shortened odds of a rate cut in every month through to September 2016. Post-September 2016 markets are factoring in an additional rate cut to 1.50% and the probability of this is put at around 34% by May 2017.
There were no changes to rates in our cash accounts table over the week. The account offering the highest rate in the YieldReport survey is UBank’s USaver Ultra account.
|Product||Int p.a.||Special Cond|
|AMP Saver Account||2.60%||31 days notice|
|AMP Notice Account||2.70%|
|ANZ Progress Saver||2.51%||Min balance $5,000|
|Arab Bank Online Savings||2.30%||Up to $500k.|
|Bankwest Smarter Esaver||2.70%||Zero w/draw pm up to $500k|
|BoQ Cash Man Account||2.05%||Limit 1 w/draw pm|
|BoQ Bonus Interest Savings||2.75%||$250k+|
|CBA NetBank Saver||1.80%||$200pm dep, $100k lim, 1wd pm|
|CBA Goal Saver Ac||2.70%|
|CUA eSaver Plus Account||2.90%|
|Heritage Online Saver||2.70%||$750,000+|
|ING Savings Accelerator||2.75%||$150k+|
|ME Online Savings||1.80%|
|NAB Reward Saver||3.10%||1 dep no w/draw mth|
|Rams Saver Account||3.15%||$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|