Nearly 20 banks in Australia have quietly cut deposit rates, and it is expected that Reserve Bank of Australia (RBA) will cut interest rates next week. Analysts warned that the number of savings in the future will be further reduced. According to the data from the financial comparison website RateCity, many banks have cut the deposit rates offered to customers in the past month. ANZ (Australia and New Zealand Bank, Aussie Bank, Westpac, AMP Bank and ING have been in the past two weeks). A sharp cut in interest rates by 25 basis points. Meanwhile, on September 25, the average savings rate, excluding the initial interest rate, has fallen to 1.1% from 1.57% in May. This decline is lower than that of the Reserve Bank of Australia in June and July. The sum of the cuts in interest rate cuts is even more.
Brokerage Morgan Stanley said that the change in cash interest rate may prompt banks to cut interest rates on savings accounts, and the average decline may be as high as 20 basis points. It is expected that major banks will only transfer some of the interest rate cuts to mortgage customers. Analysts expect the home loan standard variable interest rate to be lowered by 10 to 15 basis points, while the four major banks’ mortgage rates fell by more than 20 basis points in June and July. In July, the Reserve Bank of Australia cut the official cash rate to a record low, and major banks cut interest rates, and depositors’ interest on deposits also decreased. Analysts at Credit Suisse said that if banks want to pass the rate cut entirely to their standard floating rate, the demand deposit rate needs to be lowered by about 51 basis points to offset the impact of the rate cut of 25 basis points.
