Aussies to open term deposits before rate cut

Aussies might be tempted to open up term deposits to start saving in the coming months as the expectation that the cash rate will be reduced intensifies, an expert has asserted.

Chief economist at UBS Scott Haslem and ANZ's Warren Hogan have both spoken out in recent weeks suggesting that the Reserve Bank of Australia is set to cut interest rates soon.

Marcus Padley, from Paterson's Securities, said in an interview with ABC that it is "quite clear" that interest rates are nearing their peak.

"People who are looking at term deposits are going to be thinking to themselves, 'maybe I better lock in now, because the rate's going to be lower in three months time'," he stated.

Many banks have already started to reduce the interest rates on their term deposits.

Among those to announce they were taking this step recently were the National Bank of Australia, Westpac and the ANZ.

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