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Mozo Live: Two of the Big Four signal 'super-sized' rate cut, Westpac rearranges savings bonus offer
Stay on top of the latest in Australian banking. See interest rate changes, get news and product updates, follow market insights and read our expert analysis.
Important disclosures and comparison rate warning*
We hope you’ve enjoyed our coverage of interest rates, RBA moves, home loan comparisons and more over the course of the last several months.
Like most of you, we’re going to take a little break over the holidays. But don’t fret, we’ll be back bright and early after ANZAC Day for more coverage.
So stay tuned, stay safe and slap on that sunscreen!
Westpac reshuffles Life savings account bonus rates: same total, but less room for error
Westpac is making changes to its Life savings account effective today, dropping the base rate from 1.60% to 0.40% p.a., while increasing the bonus rate from 3.15% to 4.35% p.a.
The total stays at 4.75% p.a., but it means not meeting your bonus conditions can kill your returns.
Unfortunately, this is something we’ve been seeing more of lately with bonus saver accounts. Banks keep the headline rate the same, but shift more of it into the bonus component, making it easier for them to advertise a strong return, while quietly increasing the risk for customers who miss a step.
With Westpac Life, you’ll still earn the full 4.75% if you meet all the usual conditions each month:
Keep your balance above $0 at all times
Make at least one deposit (excluding interest)
Have more money in the account at the end of the month than you did at the beginning
But slip up on even one of those, and you’ll plummet to just 0.40% p.a.
That’s much less than the average unconditional rate of 1.31% based on the dozens of products in our database. And there are some even higher than that.
So if you’re not a fan of the interest rate roller coaster, and you’re the type who occasionally misses a deposit or only sporadically grows your balance, it might be time to compare your options.
From hold to bold: NAB, ANZ and others predict RBA could double down in May
Several economists and financial institutions, including two of the Big Four banks, are forecasting that the Reserve Bank of Australia (RBA) will make a 50 basis point (0.50%) cut to the cash rate at its next monetary policy meeting on May 20, reducing the rate from 4.10% to 3.60%.
Here’s who's tipping a ‘super-sized’ rate cut next month:
ANZ won't rule out a 50 bp cut in May , “if sentiment sours and the global growth outlook deteriorates sufficiently”, aiming for 3.35% by August 2025.
AMP chief economist Shane Oliver has acknowledged the possibility of a 50 basis point cut in May but does not advocate for an emergency reduction.
Deutsche Bank initially forecast a 50 bp cut but adjusted its prediction to a 25 basis point reduction in May after recent developments in U.S. trade policy.
The ASX RBA Rate Indicator shows market participants are pricing in a significant probability of a 50 basis point cut at the May meeting.
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