Term deposits going nowhere

Another data point from today’s RBA credit aggregates is term deposits, which I’m a bit surprised have stopped growing and not recently:

Basically as soon as the rate cuts started, term deposit growth stopped. The “other” deposit category accelerated at the same time. Mortgage offset accounts perhaps?

A longer term view of term deposits shows that long periods of stagnation are common as well as how extraordinary was the GFC run up:

It’s not inconceivable that we could see a partial unwind of this if asset markets get going.