RBA tipped to cut interest rates tomorrow as coronavirus outbreak continues to roil global economy
Amid fears the coronavirus outbreak will hasten a recession, the Reserve Bank will meet ahead of schedule tomorrow, with analysts expecting interest rates to drop to a fresh low of 0.25%.
“The RBA is under extreme pressure, following the US Federal Reserve’s extraordinary measure of slashing their official rate by 100 basis points,” said Mozo’s banking expert Peter Marshall.
“Other central banks around the world are implementing similar measures where they can, so it’s not surprising that the RBA is readying to take action.”
In a statement issued on Monday, the RBA said it would soon be introducing a bond purchasing program to protect against further economic fallout.
This comes after the US Federal Reserve decided to slash its benchmark interest rate to near zero and relaunch its GFC-era quantitative easing program.
In a move that will prove instructive to central bankers around the world, the Fed will purchase Treasury bonds and mortgage-backed securities totalling $700 billion in a bid to flush the American economy with cash.
Going down the same path would be a first for Australia. While RBA Governor Philip Lowe gestured towards the possibility months ago, he made clear QE would only be implemented if things were dire.
Details of the plan will be announced on Thursday.
RELATED: RBA prepares for bond buying after US Fed cuts rates to near zero
Minutes from the RBA’s March 3 meeting show the board recognised the potential of the virus to derail economic activity, “particularly in the education, transport and tourism sectors.”
“The uncertainty associated with the outbreak was also likely to affect household spending and business investment in coming months,” they added.
Members acknowledged that even before the virus had begun to roil the domestic economy, progress towards full employment and the board’s inflation target of 2-3% had been sluggish.
They also considered the chance more rate cuts would further inflate property prices, but ultimately decided that a lower cash rate was necessary to get the economy back up and running again.
So if you’re wondering where to keep your savings now that interest rates are set to drop further, visit our savings account comparison page to compare your options.
Savings account comparisons on Mozo
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Hi Saver
4.75% p.a. (for $0 and over)
0.25% p.a.(for $0 and over)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Earn bonus interest on your savings for the first four months from the date you open the account, even if you make withdrawals. Transfer or make payments using our mobile app or internet banking. No minimum balance required. Rest easy knowing total deposits up to $250,000 are protected by the Financial Claims Scheme.
CompareCompareHi Saver
Earn bonus interest on your savings for the first four months from the date you open the account, even if you make withdrawals. Transfer or make payments using our mobile app or internet banking. No minimum balance required. Rest easy knowing total deposits up to $250,000 are protected by the Financial Claims Scheme.
- Maximum rate
- 4.75% p.a. (for $0 and over)
- standard interest rate
- 0.25% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about P&N Bank savings accounts
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Bonus Saver
4.75% p.a. (for $0 and over)
0.25% p.a.(for $0 and over)
Yes up to $250,000
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
CompareCompareBonus Saver
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
- Maximum rate
- 4.75% p.a. (for $0 and over)
- standard interest rate
- 0.25% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about BCU Bank savings accounts
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Savings+Bonus
4.75% p.a. (for $1 to $250,000)
2.00% p.a.(for $1 to $250,000)
Yes up to $250,000
Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
Enjoy bonus interest when you deposit $100 or more per month and make no withdrawals. Access your money at any time via internet banking or our mobile app. Maximum balance $250,000 to receive bonus interest.
CompareCompareSavings+Bonus
Enjoy bonus interest when you deposit $100 or more per month and make no withdrawals. Access your money at any time via internet banking or our mobile app. Maximum balance $250,000 to receive bonus interest.
- Maximum rate
- 4.75% p.a. (for $1 to $250,000)
- standard interest rate
- 2.00% p.a.(for $1 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $5.00
- Maximum rate conditions
- Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
- Access
- -
- Minimum balance
- $1.00
- Other restrictions
- Must become a First Option Bank member to open an account.
Read reviews and learn more about First Option Bank savings accounts
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Savings Maximiser
5.40% p.a. (for $0 to $100,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Access a great variable rate when you grow your balance each month, in addition to other eligibility criteria. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Access a great variable rate when you grow your balance each month, in addition to other eligibility criteria. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.40% p.a. (for $0 to $100,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read reviews and learn more about ING savings accounts
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Bonus Saver Account
4.50% p.a. (for $0 to $500,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 4.50% p.a. (for $0 to $500,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about MyState Bank savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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