The Reserve Bank on 6 August delivered another rate hold, broadly anticipated due in large to the weaker-than-expected but still higher-than-ideal Q2 CPI print.
And perhaps, in small part, due to the sudden deterioration in the US jobs market that stoke fears of recession in the major global economy.
However, the RBA made little reference to recent financial market instability, globally and domestically, in its post-meeting statement.
Instead, the Board reinforced a more hawkish tone, revealing that a rate hike was considered, while a cut was definitely off the table.
Especially standing out was the statement that "policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range".
With inflation proving to be a dragon that can't be tamed, the RBA once again pushed back its forecast of hitting its target mid-point by another six months - trimmed mean inflation at 2.6% by December 2026, from June 2026.
Though it's looking like the official cash rate at 4.35% is not coming down anytime soon, at least until 2025 if ANZ and NAB forecasts are correct, term deposit rates are on a downtrend.
Just this week, we saw all movements were going down south, with Australia's fifth and sixth-largest banks leading the charge.
Macquarie Bank moves term deposit rates down
Following several weeks of rate increases that saw returns crack past the 5% p.a. mark, Australia's fifth-largest bank Macquarie slashed its term deposit rates.
Good news for depositors who prefer longer terms, this week's cuts were focused on the short- and mid-term TDs.
The largest cut - 25 basis points - was applied to the 12-month term, effectively bringing down Macquarie Bank's top rate of 5.10% p.a. to 4.85% p.a.
The bank's nine-month term likewise received the same cut.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
3 Months |
4.85% p.a. (-10 bps) |
$5,000 - $1,000,000 |
End of term |
|
4 Months |
4.80% p.a. (-10 bps) |
$5,000 - $1,000,000 |
End of term |
|
6 Months |
4.75% p.a. (-10 bps) |
$5,000 - $1,000,000 |
End of term |
|
9 Months |
4.70% p.a. (-25 bps) |
$5,000 - $1,000,000 |
End of term |
|
12 Months |
4.85% p.a. (-25 bps) |
$5,000 - $1,000,000 |
End of term |
Bank of Queensland drops top term deposit rates
Bank of Queensland joined in on the action, bringing its top rates down from above the 5.00% p.a. mark.
From 5.10% two months ago, BoQ's popular 6-month term is now down to 5.00% p.a. - the only one remaining within this range and the bank's current top rate.
A much larger 25 basis point cut, however, was applied to the 9- and 12-month terms, bringing them down to 4.85% p.a.
Check how BoQ's term deposit rates moved this week.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
4 Months |
4.75% p.a. (-15 bps) |
$5,000 - $250,000 |
End of term |
|
6 Months |
5.00% p.a. (-10 bps) |
$5,000 - $250,000 |
End of term |
|
9 Months |
4.80% p.a. (-25 bps) |
$5,000 - $250,000 |
End of term |
|
12 Months |
4.80% p.a. (-25 bps) |
$5,000 - $250,000 |
End of term |
Bank of Sydney cuts rates on 3- and 6-month term deposits
Bank of Sydney's popular 3- and 6-month term deposits also went down this week.
Sustaining a hefty 45 basis point drop was the deposit product on three-month terms, down from 4.90% p.a. to 4.45% p.a.
The bank's top rate of 5.15% p.a. for 6-month TD accounts opened online also went down 5 basis points to 5.10% p.a.
The second highest rate Bank of Sydney offers is available through 12-month terms, available even for accounts opened in-branch.
The minimum deposit size is $1,000, and the maximum is $1 million.
Great Southern Bank applies the slasher across a range of term deposits
Great Southern Bank also cut the rates across a range of term deposit products by up to 15 basis points this week.
Here are the new changes to its offered rates.
|
Term length |
New rate (change) |
Deposit size |
Payment frequency |
|
5 Months |
4.95% p.a. (-15 bps) |
$5,000 - $100 million |
End of term |
|
6 Months |
4.80% p.a. (-10 bps) |
$5,000 - $100 million |
End of term |
|
8 Months |
5.00% p.a. (-10 bps) |
$5,000 - $100 million |
End of term |
|
9 Months |
4.70% p.a. (-5 bps) |
$5,000 - $100 million |
End of term |
|
11 Months |
5.00% p.a. (-15 bps) |
$5,000 - $100 million |
End of term |
|
12 Months |
4.75% p.a. (-10 bps) |
$5,000 - $100 million |
End of term |
In addition to the adjustments on the standard term deposits, the customer-owned bank also moved the rates on its Platinum Plus 55+ term deposit down 10 basis points to 4.85% p.a. for deposits paid at maturity and 4.75% p.a. for those paid monthly.
Platinum Plus 55+ is exclusively available for customers over 55 years old.
Other term deposit cuts this week
- ME Bank, followed in the footsteps of BoQ, and lowered its 4, 6, 9, and 12-month business term deposits by up to 60 basis points to bring rates down to 4.00% p.a.
Photo by Freepik
