This week’s biggest story (in my view) for the Australian economy actually started late last week. Quietly, CBA cut its term deposit interest rates, prompting ANZ and NAB to do the same on Monday of this week. The moves are seen as pre-empting RBA rate cuts. In between the lines, it appears banks are dropping hyper-competitive interest rates to attract customers anticipating an Australia where money is slightly cheaper – and protect their own margins. Of course, the RBA has indicated its inflation target won’t be hit until 2026 (helpfully, they didn’t address the fact rental inflation is becom…
