Daily Flows

• Rates of 5.08% for 3-month term deposits have been achievable, with banks valuing a diversified pool of funding partners.
• 5.10% for 1-year term deposits continues to stand out as the highest rate.
• At the longer end, 5.25% remains the highest term deposit rate offered by an ‘A’ rated bank.

Calm Before the Storm: RBA Today & U.S. Election

• Today presents a unique setting with Melbourne Cup interruptions and the RBA meeting this afternoon, where a holding of the cash rate is expected.
• Economists and markets are increasingly aligned, with market pricing suggesting May as the likely timing for the first rate cut, while economists’ estimates range from February to May.
• Headline CPI is tracking below previous RBA estimates; however, the trimmed mean remains stubborn, aligning closely with prior RBA forecasts.
• Overseas, markets are positioning for a potentially historic election outcome. Polls are indicating a close race, with recent momentum favouring Harris. This shift has influenced markets, tightening bond yields and weakening the U.S. dollar.