Summary:
This across-the-curve decline suggests a market in a holding pattern, with investors positioning defensively amid expectations of a potential pivot by the Reserve Bank of Australia (RBA). The Bloomberg AusBond Composite Index edged up by 0.09%, continuing its gradual rally. This reflects cautious optimism, with investors favoring fixed income as they await clearer signals from both domestic and global central banks.
Markets are increasingly pricing in a 90 basis point rate cut over the next year, targeting a 2.85% cash rate. However, no aggressive moves are being made yet—investors remain in wait-and-see mode, monitoring developments on tariffs and geopolitical fronts
Figure 1: Swaps on RBA Rate Cuts
| Product | Interest Rate p.a. | Notes |
|---|---|---|
| AMP Saver Account | 4.70% | This is the total variable rate which applies to balances up to $500,000, made up of the standard rate and the Bonus Interest Rate (subject to eligibility). |
| ANZ Premium | 0.05% | $10,000 - $499,999 |
| ANZ Progress Saver | 3.50% | Make at least one deposit of $10 or more in a month, make no withdrawals (including transfers), or incur any fees, charges in the month. |
| Arab Bank Online Savings | 4.25% | On balances of $250,000 to $499,999 |
| Bankwest Hero Saver | 4.10% | On balances up to $250,000.99 with no withdrawals in that month |
| BOQ Fast Track Saver | 2.25% | ($1,000 deposited + 5 eligible transactions for per month) |
| BoQ Bonus Interest Savings | 5.25% | Bonus interest is paid into your account when you limit your withdrawals to a maximum of one per month |
| CBA NetBank Saver | 4.65% | Introductory variable rate during the first 5 months of your first NetBank Saver (includes fixed bonus margin of 2.75% p.a.) |
| CBA Goal Saver Account | 4.45% | At least 1 deposit required; balance at end of month must exceed balance at start of month. |
| Great Southern Bank | 4.75% | Bonus interest (balances up to $100,000) 4.25% |
| Heritage Online Saver | 4.35% | a 4 month Bonus Intro Rate* available for new members on balances up to $100,000. |
| ING Savings Accelerator | 4.95% | $150,000 and over |
| Macquarie CMA | 2.25% | Minimum $5,000 |
| ME Online Savings | 3.85% | Bonus interest applies to balances up to $500,000. |
| NAB iSaver | 4.65% | This is the total rate (standard variable rate plus fixed bonus margin rate) you could earn for the first four months, if you have not held a NAB iSaver in the last 12 months (on balances up to $20 million). |
| NAB Reward Saver | 4.40% | This is the total rate (variable base rate + variable bonus rate) you could earn on your NAB Reward Saver account if you meet the variable bonus rate conditions. |
| Rabobank PremiumSaver | 4.80% | On balances to $250,000. Balance increased by $200 a month. |
| RAMS Saver Account | 1.40% | On balances to $500,000. Minimum $200 deposit each month with no withdrawals. |
| Suncorp Growth Saver | 4.55% | Minimum $200 deposit each month and no more than 1 withdrawal |
| ubank Save Account | 4.85% | 5.5% on first $100,000, 5.0% on next $150,000; applies only on amounts upto $250,000. Minimum $500 deposit each month into Spend or Save accounts. |
| Up Savers Account | 4.35% | Make 5 successful purchases using your Up or 2Up debit card or digital wallets in a month. |
| Westpac eSaver | 4.50% | 3.15% p.a. for the first 5 months for new Westpac eSaver customers |
| Westpac Reward Saver | 4.50% | Make a deposit to the account and ensure account balance is higher at the end of the month than the beginning. Keep your account balance above $0 at all times. |