The RBA held the cash rate steady at 3.85 per cent this month, but banks have still been cutting interest rates for savers. (Source: AAP\/Getty) <\/p>\n
ANZ<\/a> has cut the interest rate on its popular savings account despite the Reserve Bank of Australia (RBA) opting to hold the cash rate steady<\/a> last week. The Big Four joins other banks like NAB<\/a> and Bendigo Bank<\/a> in quietly cutting savings rates over the last month.<\/p>\n ANZ today cut the maximum rate of its Progress Saver by 0.10 per cent to 3.40 per cent. The bank previously passed on RBA\u2019s May interest rate cut<\/a> in full to savings customers, lowering rates on its key accounts one week after the cut<\/a>.<\/p>\n NAB<\/a> cut the rate of its Reward Saver account by 0.05 per cent on June 20, bringing the total rate to 4.35 per cent. Bendigo Bank<\/a> cut the rate on its EasySaver account by 0.10 per cent on July 1 to 3.05 per cent.<\/p>\n RELATED<\/p>\n Canstar data insights director Sally Tindall said ANZ was the latest bank to \u201csneak in\u201d a savings interest rate cut, following two earlier cash rate cuts this year.<\/p>\n \u201cWhile the spotlight has been firmly on mortgage holders, savers \u2014 which are the majority of Australians \u2014 have quietly been taking hits of their own,\u201d she said.<\/p>\n \u201cTwo of the big four banks have sliced select savings rates in the past month, despite no move to the cash rate.<\/p>\n \u201cWhile cuts of 0.05 and 0.10 percentage points may seem trivial on paper, for customers doing all the right things to meet monthly conditions, it\u2019s yet another frustrating backwards step.\u201d<\/p>\n Do you have an interest rates story to share? Contact tamika.seeto@yahooinc.com<\/p>\n Just four banks offer at least one savings rate of 5 per cent or more: BOQ, Westpac, MOVE and ING.<\/p>\n But if the RBA cuts the cash rate as anticipated next month, Tindall said the highest ongoing rates would \u201calmost certainly sink into the \u20184\u2019s\u2019\u201d.<\/p>\n It comes after NAB cut its term deposit rates<\/a> earlier this week, with cuts of between 0.5 and 0.20 per cent across multiple terms. ANZ also trimmed its 8-month Advance Notice term deposit by 0.10 per cent last week.<\/p>\n The unemployment rate<\/a> rose 4.3 per cent in June, this week\u2019s ABS data revealed, up from 4.1 per cent in May.<\/p>\n Employment increased by 2,000 people during the month, but the number of officially unemployed people jumped by 33,600.<\/p>\n Commonwealth Bank<\/a> economist Belinda Allen said the data helped support the case for an August rate cut.<\/p>\n \u201cOne hurdle has now been removed for an August rate cut and suggests even with a much higher than expected trimmed CPI print the RBA should deliver a 25 basis point cut,\u201d she said.<\/p>\n Story Continues <\/p>\n Westpac<\/a> economist Ryan Well said the data strengthened the \u201calready-strong case to deliver the next rate cut in August\u201d.<\/p>\n AMP<\/a> chief economist Shane Oliver said the data leaves the RBA “on track to cut rates in August”.<\/p>\n “With unemployment breaking to its highest since the pandemic, and June jobs data showing broad-based weakness, it\u2019s now hard to describe the labour market as tight. It also supports the view that the RBA should have cut this month,” he said.<\/p>\n Betashares chief economist David Bassanese, who correctly predicted a hold in July, said the unemployment data was a \u201cslam dunk\u201d for an August rate cut.<\/p>\n The major banks all expect the RBA will cut interest rates at the August meeting<\/a>. They are then split on how many more interest rate cuts will follow.<\/p>\n Here are their current forecasts:<\/p>\n CBA: Two more cuts in August and November to bring cash rate to 3.35 per cent<\/p>\n Westpac: Four more cuts in August, November, February and May to bring cash rate to 2.85 per cent<\/p>\n NAB: Three more cuts in August, November and February to bring cash rate to 3.10 per cent<\/p>\n ANZ: Two more cuts in August and November to bring cash rate to 3.35 per cent<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Canstar data insights director Sally Tindall said there were only a handful of banks offering savings rates over 5 per cent and these may soon disappear. (Source: Supplied) \u00b7 Source: Supplied <\/p>\n