From COMMSEC today:
Term deposits held with banks fell by $2 billion in April to $536.3 billion, the lowest result in 22 months. Term deposits are down 1.2 per cent on a year ago – the biggest annual decline in 11 years.
It’s tempting to condemn the RBA but if I cross-reference this with APRA deposit data also out today I get a very different picture. Both month on month and year on year bank deposit growth is still tracking sideways at decent levels:
We’re clearly seeing some form of deposit cycling, here. Is it mortgage offsets accounts? More at-call money? I’m open to explanations…
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