There's still a couple of weeks before November's monetary policy decision, on Melbourne Cup day, with real uncertainty about the direction the RBA will take.
Earlier this week, Governor Michele Bullock warned of the potential inflationary effects the situation in the middle east could have in Australia, as well as the domestic factors working against RBA efforts to bring down inflation.
Much will depend on the data released between now and November, with next week's CPI inflation figures for the September quarter looking pivotal.
Term deposit providers have to try and preempt the RBA decision to some extent, keeping rates competitive while trying to make sure not to be caught stuck locked in to paying term deposit customers well above market rates if the cash rate does not go up.
This week was relatively quiet for term deposit movements, with providers seemingly waiting for a more complete picture, although several banks still adjusted rates.
ANZ
The only one of the big four to move this week was ANZ, which cut back rates on its Advance Notice term deposit products by 5 basis points.
After yesterday's unemployment data, one of the big three releases that could inform November's cash rate move, ANZ head of Australian economics, Adam Boyton, said the result was in line with RBA expectations.
This likely lends itself against a rate increase, which might have played a role in this week's decision to cut rates.
Advance Notice term deposits are available for deposits between $5,000 and $99,999.
| Term length | Change | Interest rate |
| Twelve months (Annual interest payment) | -5 bps | 4.75% p.a |
| Twelve months (Semi-annual interest payments) | -5 bps | 4.69% p.a |
| Twelve months (Quarterly interest payments) | -5 bps | 4.67% p.a |
| Twelve months (Monthly interest payments) | -5 bps | 4.65% p.a |
Bendigo Bank
Bendigo was another to cut rates this week, slashing returns by up to 50 basis points.
Customers can deposit anything from $5,000 to $5,000,000, with discounted rates available for more frequent interest payments.
| Term length | Change | Interest rate |
| Four months | -50 bps | 3.60% p.a |
| Six months | -20 bps | 4.00% p.a |
| Nine months | -10 bps | 4.00% p.a |
AMP
The other big bank to make moves this week was AMP, who instead moved rates up.
AMP now offer a 5.25% p.a return on one year term deposit products, drawing level with Bank of Sydney after a 30 basis point increase.
Earlier this week, AMP Chief Economist Shane Oliver discussed how the unfolding Israel-Palestine crisis could impact the Australian economy, and said provided Iran stays out of the conflict, the impact on oil prices should be minimal.
The below rates are for interest payments at the end of term, but AMP offer discounts in exchange for semi annual, quarterly or monthly interest payments.
| Term length | Change | Interest rate |
| Six months ($5,000-$24,999) | +10 bps | 4.95% p.a |
| Six months ($25,000-$4,999,999) | +10 bps | 5.00% p.a |
| One year ($5,000-$24,999) | +30 bps | 5.20% p.a |
| One year ($25,000-$4,999,999) | +30 bps | 5.25% p.a |
Other movers
- Community First Bank cut rates by 10 basis points, as did Northern Inland Credit Union
- The Mutual Bank cut rates up to 15 basis points
