Little competition as banks cut deposit not mortgage rates (members)

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More chatter today about supposed bank competition and interest rates. The Australian reports that:

Commonwealth Bank and Westpac have reportedly cut their five-year term rates by 20 basis points each, to 4 per cent and 4.15 per cent respectively, while National Australia Bank and ANZ Bank have shed 0.15 per cent and 0.18 per cent, respectively. It leaves NAB’s current rate at 4.05 per cent and ANZ’s at 4.04 per cent.

Yep. Bank treasurers have clearly concluded that the risks to Australia’s long term interest rate structure are all down, despite current talk of rate rises. Here are the newly released RBA indicative deposit rates, which are collated on the last day of every month:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.