The RBA elected to hold the cash rate steady at 4.35%, and now won't meet again until 6-7 May.
Governor Michele Bullock refused to rule anything in or out, and the post-meeting statement from the Board didn't reveal many change insights.
Strong albeit volatile unemployment figures released on Thursday, and re-emerging signs of stubborn inflation at least in the US, appear to have put the kibosh on early calls for an RBA rate cut for now.
While there were growing calls to cut the cash rate before mid-year, the major bank economists have it pegged for September or November.
November is historically a popular time to move, with 13 out of 87 - around 15% - movements since 1990 occurring in the penultimate month of the year; this is the most popular month.
But for Bank of Queensland chief economist Peter Munckton, who appeared on the Savings Tip Jar podcast this week, this could be more like February 2025.
"The US is about six months ahead of us on the inflation path," he said.
"It's been harder to get inflation to slow that last step down. And because that last step down globally has been hard to get through, I think it's likely to be the case here."
All of this has a flow on to term deposit rates, which appear to have arrested the falls seen in earlier weeks, to have a few providers putting rates up slightly to be more competitive.
Macquarie Bank edges up some rates by 5bps
Another week, another TD rate movement from Australia's fifth-largest bank - this time to 3 month and 12 month terms.
The 12 month rate now stands at 4.70% p.a. while the 3 month rate stands at 4.85% p.a.
Both have a minimum deposit of $5,000 (max $1m) and interest is payable at maturity.
Bank of Queensland increases by up to 10bps
BOQ boosted 6 month and 9 month rates by 10 basis points this week, both to 4.90% p.a.
The minimum deposit is $5,000 while the maximum is $250,000, and interest is payable at the end of term; there is a 10bps reduction in the rate if savers opt for a monthly payment.
Other notable movements
- Tasmanian-based Bank of Us increased its 6 month rate by 20bps to 5.00% p.a. Tasmanian residents only.
- Another Tassie bank, MyState, boosted rates on 9 and 12 month products by up to 20bps; the 9-month rate is now 4.85% p.a.
- RACQ Bank cut rates on its 9 and 12 month rates by 10 to 15bps to 4.75% p.a.
- Horizon Bank cut a swathe of rates by 10 to 15 basis points, with the 12 month rate now standing at up to 4.70% p.a.
Photo by Adam Smith on Unsplash
