ANZ had previously forecast a hold in the Board's meeting on 7-8 July, while CommBank, NAB, and Westpac economists had earlier pencilled in a 25 basis point cut, which would bring the country's key interest rate down to 3.60%.
However, weak retail sales data shifted the outlook for Australia's fourth-largest bank, with ANZ now calling a July rate cut "the path of least regret".
ANZ had earlier anticipated the third rate cut this year wouldn't occur until the next meeting in August when the Board had further inflation data on hand.
The June quarter CPI is due out on 30 July.
Still, ANZ economists continue to expect an August cut, taking the cash rate to 3.35% if the two consecutive 25bps rate reductions materialise, followed by an "extended pause" to assess the impact of the cumulative 100bp rate drops.
"Moving beyond 3.35% in quick succession, in the absence of a global or domestic shock, would run the risk of needing to tighten policy in late 2026 or early 2027," ANZ economist Adam Boyton said.
Despite being the last of the major banks to revise its call, ANZ was quick on the draw in cutting its home loan and term deposit rates.
Although not to be outdone is Australia's biggest bank, jumping the gun ahead of the RBA meeting to cut its term deposit rates on the last weekday.
CommBank trims term deposit rates
| Term | New rate (change) | Deposit size | Frequency payment |
|---|---|---|---|
| 4 Months | 2.90% p.a. (-5 bps) | $5,000 - $49,999.99 | End of term |
| 5 Months | 2.95% p.a. (-5 bps) | $5,000 - $49,999.99 | End of term |
| 6 Months | 3.00% p.a. (-5 bps) | $5,000 - $49,999.99 | End of term |
| 7 Months | 3.05% p.a. (-10 bps) | $5,000 - $49,999.99 | End of term |
| 8 Months | 3.10% p.a. (-10 bps) | $5,000 - $49,999.99 | End of term |
| 9 Months | 3.15% p.a. (-10 bps) | $5,000 - $49,999.99 | End of term |
| 10 Months | 3.20% p.a. (-10 bps) | $5,000 - $49,999.99 | End of term |
| 11 Months | 3.25% p.a. (-10 bps) | $5,000 - $49,999.99 | End of term |
| 12 Months (Special Offer) | 3.80% p.a. (-20 bps) | $5,000 - $1,999,999 | End of term |
Not too happy Friday for CommBank's term deposit customers after the bank cut TD rates across a range of terms at the end of the workweek.
The bank, which expects two 25bps cuts each in the July and August RBA meetings, trimmed as much as 20 basis points from its term deposit offerings.
Getting the largest chop was CommBank's 12-month Special Offer TD, now paying 3.80% p.a. Annually on deposits starting at $5,000 up to $1,999,999.
This "special offer" is available to new and existing personal and SMSF term deposit customers.
At one stage not long ago this rate was 5% p.a.
In its recently published FY26 outlook, the bank noted that lower inflation combined with falling interest rates is forecast to boost household discretionary spending and thereby "support a lift in real GDP growth to rates of around 2.3% by the end of the financial year".
ANZ cuts business notice term deposits
|
Term |
New rate (change) |
Payment frequency |
|
12 Months |
3.55% p.a. (-15 bps) |
Annually |
|
18 Months |
3.55% p.a. (-15 bps) |
Annually |
|
24 Months |
3.50% p.a. (-15 bps) |
Annually |
ANZ trimmed 15 basis points from its term deposits offered to businesses and organisations managing surplus funds starting at $5,000.
Following this week's adjustments, the headline rate for ANZ's business notice term deposit sits at 3.55% p.a. on a 12-month term.
This is 25 basis points lower compared to CommBank's comparable business investment account (3.80% p.a.), and 35 basis points below NAB's 12-month business term deposit (3.90% p.a..
Businesses can invest up to $99,999 of their surplus cash in ANZ business notice TDs.
Newcastle Permanent cuts term deposit rates
|
Term |
New rate (change) |
Deposit size |
Payment frequency |
|
3 Months |
3.85% p.a. (-10 bps) |
$1,000 - $1,000,000 |
End of term |
|
6 Months |
4.15% p.a. (-10 bps) |
$1,000 - $1,000,000 |
End of term |
|
9 Months |
3.70% p.a. (-10 bps) |
$1,000 - $1,000,000 |
End of term |
|
1 Year |
3.80% p.a. (-10 bps) |
$1,000 - $1,000,000 |
End of term |
|
2 Years |
3.40% p.a. (-10 bps) |
$1,000 - $1,000,000 |
Annually |
|
3 Years |
3.65% p.a. (-25 bps) |
$1,000 - $1,000,000 |
Annually |
|
4 Years |
3.40% p.a. (-10 bps) |
$1,000 - $1,000,000 |
Annually |
|
5 Years |
3.40% p.a. (-10 bps) |
$1,000 - $1,000,000 |
Annually |
Customer-owned bank Newcastle Permanent made widespread cuts across its term deposit products.
Customers of the bank will now find it even harder to secure returns within the 4% p.a. range, with only one term available at the bank whose rate starts at '4'.
Newcastle Permanent's top rate is available through its 6-month term at 4.15% p.a., though this trails the current market leader for that term: Judo Bank's 4.55% p.a.
Greater Bank drops term deposit rates
|
Term |
New rate (change) |
Deposit size |
Payment frequency |
|
3 Months |
3.85% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
6 Months |
4.15% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
9 Months |
3.70% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
1 Year |
3.80% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
2 Years |
3.40% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
3 Years |
3.65% p.a. (-25 bps) |
$5,000 - $49,999.99 |
End of term |
|
4 Years |
3.40% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
|
5 Years |
3.40% p.a. (-10 bps) |
$5,000 - $49,999.99 |
End of term |
Newcastle's sister bank Greater Bank also wielded the axe on its term deposit products, reducing up to 25 basis points across various terms.
Like Newcastle, its best available rate is 4.15% p.a. on a 6-month term.
However, Greater Bank requires a minimum $5,000 deposit to open a term deposit account.
Judo Bank lowers term deposit rates
| Term | New rate (change) | Deposit size | Frequency payment |
|---|---|---|---|
| 3 Months | 4.30% p.a. (-5 bps) | $1,000 - $2,000,000 | End of term |
| 6 Months | 4.40% p.a. (-15 bps) | $1,000 - $2,000,000 | End of term |
| 9 Months | 4.20% p.a. (-5 bps) | $1,000 - $2,000,000 | End of term |
| 12 Months | 4.10% p.a. (-5 bps) | $1,000 - $2,000,000 | End of term |
Judo Bank is back on the chopping block, reversing the boosts applied to its top TD rate and further lowering returns on other terms.
The current best rate available from the bank is 4.40% p.a. on a 6-month term, down 15 basis points after this week's round of adjustments.
The last time Judo was in the term deposits news cycle was early June when it raised its headline TD rate by 10 bps.
Judo also adjusted the rates on its Business and SMSF term deposits.
Other movers
- Suncorp Bank dropped 10 bps from 6-month term deposit rate (4.05% p.a.), and applied up to 15 bps cuts across a range of terms.
- Bankwest trimmed 20 bps from 5-month headline TD rate (4.00% p.a.) and dropped other rates by between 10 and 20 bps.
- Bank of Sydney lowered it 3- and 9-month term deposits by up to 40 bps, now paying 3.95% p.a. and 4.20% p.a., respectively, at maturity.
- The Mutual Bank cut its 3-, 6-, and 9-month term deposits by up to 20 bps.
- Bank First dropped its 1-year regular income TD rate by 10 bps to 3.80% p.a. paid fortnightly, while regular term deposits were cut by up to 15 bps.
- MOVE Bank trimmed term deposit rates by up to 10 bps.
- Beyond Bank cut 3- and 6-month term deposit rates by 15 bps.
- Police Bank decreased term deposit rates by as much as 20 bps.
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Image courtesy of ANZ Bank
Bea Garcia
Harry O'Sullivan
William Jolly
Dominic Beattie
