Prices rose 5.4% over the year from September quarter '22 to '23, rising 1.2% over the three months, well above expectations.

In the aftermath of the CPI release, economists from CommBank, Westpac and ANZ declared they were now anticipating a further cash rate increase come Melbourne Cup day.

CBA Head of Australian economics, Gareth Aird, said RBA rhetoric, particularly governor Michele Bullock's declaration she 'would not hesitate' to pull the trigger again if needs be, meant Australia's biggest bank now ascribed a 70% chance to a further 25 basis point increase on November 7th.

"We consider the lift in underlying inflation over Q3 23 to be sufficiently strong for the RBA to act on their hiking bias at the upcoming Board meeting," he said.

While mortgage holders across the country will be bracing themselves once again, Aussies on the hunt for high rate term deposits will be salivating at the prospect of further rate increases.

For the time being though, there has not been a flurry of upward activity, with this week mostly seeing providers cutting rates (although all of the cuts came prior to the CPI inflation release).

Judo cut rates by 10 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
Three months $1,000-$999,999 End of term 4.65% p.a (-0.10)
Six months $1,000-$999,999 End of term 4.90% p.a (-0.10)
Nine months $1,000-$999,999 End of term 4.90% p.a (-0.10)
One year $1,000-$999,999 End of term 5.05% p.a (-0.10)
Two-Five years $1,000-$999,999 End of term 5.10% p.a (-0.10)
Two-Five years $1,000-$999,999 Annually 5.05% p.a (-0.10)

Just a few hours before the CPI came out, Judo brought down its rates slightly, with 10 basis point cuts across the board.

Terms one year and above still earn above the 5% benchmark, but Judo's one year terms are now 20 basis points below Bank of Sydney, which continues to offer 5.25% p.a.

For two year terms, 5.10% p.a is still strong, but Judo is now 15 basis points behind the market leaders for two year terms, G&C Mutual, which also offers 5.25% p.a.

Judo's products are all available with monthly interest rate payments as well, with 10 basis point discounts from the above rates.

Community First Bank cuts rates by 15 basis points

Term length Deposit size Payment frequency Interest rate (Percentage point change)
One year $50,000-$1,000,000 End of term 5.10% p.a

Community First was the other provider along with Bank of Sydney to offer 5.25% p.a returns on one year terms, but that changed this week with a 15 basis point cut.

This is a special offer available at Community First, with limited allocation, and only available for new customers.

Customers need a minimum deposit of $50,000, which prices out some customers, compared to the minimum deposit at Bank of Sydney of just $1,000.

Without the special offer, the return on one-two year term deposits between $50,000 and $100,000 with Community First is 4.30% p.a.

Other movers

  • Credit Union SA cut rates by 10 basis points

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        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of December 1, 2023. View disclaimer.

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