Australian Cash & Fixed Interest & Term Deposits
While the RBA in unlikely to lift the official cash rate in 2017, the banks have already started lifting both fixed and variable mortgage rates as offshore borrowing costs squeeze net interest margins.
GDP growth for 2017 around 2.8% is forecast, building into the second half. China’s continued growth will support Australian exports including mining, agriculture, education and tourism while residential property will benefit from continued interest from the rapidly expanding middle class.
Inflation is likely to remain weak during 2017, expected to average about 2.0%, with downward pressure continuing to come from anaemic wage price inflation which will likely remain below trend under 2.0%.
We expect the domestic cash rate to remain at 1.50% during 2017, although a 25-basis point move down wouldn’t surprise, unlike any move up. In the U.S., we anticipate a benchmark federal-funds rate of about 1.25% to 1.50% by 2017’s year-end.
Current Term Deposit Rates
| TERM | $5K-$100K | $100K-$500K | $500K-$1M |
| At-Call Deposit Rate | 1.75% | 1.75% | 1.75% |
| 1 Month | 1.75% | 1.75% | 1.75% |
| 3 Months | 2.30% | 2.30% | 2.30% |
| 6 Months | 2.60% | 2.60% | 2.60% |
***There is currently a special 6 month Term Deposit Rate of 2.70% on offer for a limited time as a “Rollover Special” for existing deposits.
**Rates are subject to change. Changes to the official RBA cash rate can impact the rates offered.
To find out more about fixed term deposits please give one of our friendly advisers a call to discuss.
