Daily Flows

• The quarter closed out with a couple of domestic banks chasing funds, offering 4.80% for 6-month term deposits.
• APRA’s latest statistical releases reveal a growing funding gap, with loan growth picking up while deposit growth has been slowing.
• We expect this trend to drive increased demand in the wholesale space, particularly for NCDs and TDs.

RBA Today

• The RBA meets today for its first decision under the new board structure. A hold is expected, with no surprises anticipated.
• Markets will also be watching for retail sales data and Assistant Governor Kent’s speech on Wednesday for additional context.
• The RBA will remain attentive to election-related headlines, though these are not expected to shift the broader narrative.
• Global uncertainty continues to weigh on the policy outlook, with the RBA likely to remain cautious amid external risks.
• Trump’s upcoming “Liberation Day” announcements could provide greater clarity on global trade dynamics, influencing the RBA’s future considerations.