Latest news with #Westpac
News.com.au
5 hours ago
- Business
- News.com.au
NAB announces second rate cut for savers in a month
NAB has become the latest bank to move on interest rates, cutting the rate of one of its more popular savings accounts. NAB has announced its Reward Savers account has fallen by 0.05 per cent for a new maximum rate of 4.35 per cent, in the second cut in less than a month. It follows a 25 basis points rate reduction on May 23 in line with the Reserve Bank of Australia's official interest rate reductions. Account holders with NAB's Reward Savers will now get a 30 basis point reduction on their money held in the account. Canstar data insights director Sally Tindall described it as a small blow for savers who are already watching their returns slip away. 'It shows that banks don't need a cash rate change to move the goalposts for customers. It's a small move but a disappointing one nevertheless,' she said. According to Canstar, NAB is not the only bank moving on rates, with Australians now having just six banks offering at least one ongoing savings rate above 5 per cent including some young adult accounts and excluding those for children. 'While the average savings rate on our database is an uninspiring 3.07 per cent, there are six banks still offering an ongoing savings rate of 5 per cent or more,' Ms Tindall said. While each of the savings accounts comes with terms and conditions, including deposits and transactions, BOQ Future Super, BCU Bank Boss, P & N Bank Savvy Savers, MOVE Bank Growth Saver and ING Savings Maximiser all still offer rates above 5 per cent. Westpac Life Spend and Save also offers younger Aussies a 5 per cent savings rate, but comes with the major caveat of being for those aged 18 to 29. Ms Tindall warned if the Reserve Bank cuts the cash rate again in July, which the bond market says has an 83 per cent chance of happening, the days of a 5 per cent savings rate could be behind us. 'If the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter,' she said. 'Term deposit rates are, unsurprisingly, falling faster than at-call savings rates, as banks continue to bake in further cash rate cuts into the fixed rate term. 'If you're someone who likes the certainty and security a term deposit can bring, time is of the essence as these rates are likely to keep on falling in the weeks ahead.'
Business Recorder
5 hours ago
- Business
- Business Recorder
Australia, NZ dollars steady after setback, geopolitics a drag
SYDNEY: The Australian and New Zealand dollars found some footing on Friday as the Israel-Iran conflict continued but did not escalate to US involvement, offering a welcome reprieve to risk assets. Markets were left in geopolitical limbo after President Donald Trump put off a decision on whether to strike Iran for two weeks, while the two sides traded more missile attacks. Still, the lack of an immediate US attack was enough for the Aussie to edge up 0.1% to $0.6487, having dived as deep as $0.6446 overnight. Support lies at $0.6408 with resistance at the recent seven-month high of $0.6552. The kiwi dollar was hanging on at $0.6000, having slid as far as $0.5959 on Thursday as a break of support sparked stop-loss selling. That was well off the eight-month top of $0.6088 hit early in the week and risked a retreat to $0.5926. A mixed Australian jobs report had little impact on market expectations for a quarter-point rate cut from the Reserve Bank of Australia (RBA) in July, which is priced at a 75% chance. 'We remain comfortable with our view that the RBA's next rate cut is most likely to occur in August,' Westpac analysts said in a note. 'The RBA have made it clear they want to adjust policy in a cautious and predictable manner, warranting another quarterly reading on inflation and time to assess global conditions.' Inflation figures for the second quarter are not due until late July. Across the Tasman, economic growth rebounded a little faster than expected in the first quarter, but business investment was disappointingly weak. Markets still see scant chance of the Reserve Bank of New Zealand cutting its 3.25% rate in July, though the probability of an August move is above 60%. Australia, NZ dollars take collateral damage from Mideast conflict 'We now expect the RBNZ to pause the easing cycle at July's meeting, instead of cutting,' said Andrew Boak, an economist at Goldman Sachs. However, given the large amount of slack in the labour market, Boak saw more scope on the downside for rates and forecast three more quarter-point easings to 2.5%, well below the market's 3.0% floor.
The Australian
10 hours ago
- Business
- The Australian
Smaller banks offering lowest home loan interest rates after RBA rate cuts: canstar
Making one simple change could save tens of thousands of dollars, and that's even before making extra repayments or throwing money into an offset account. The average owner-occupier variable home loan rate is now at 5.8 per cent, comparison group Canstar estimates. So if you're on that rate or above, and especially if you're in the early years of a 30-year mortgage, it might be time to shop around for a better deal. To give you an idea of what you could be paying, the lowest variable offering currently in the market is 5.34 per cent. For first home buyers it's even lower at 5.24 per cent. Who's offering the best rates? Smaller banks and non-bank lenders are offering the most competitive rates. Non-bank lender Pacific Mortgage Group is leading the pack with its 5.34 per cent variable loan but there are plenty of others sitting just slightly higher, per the table below. Again, keep in mind that Horizon's offering is only for first-home buyers. All up, eight lenders are currently offering rates of 5.39 per cent, including People's Choice, RACQ Bank and Australian Mutual, while a handful more have rates as low as 5.44 per cent. All up, 34 lenders now offer at least one variable rate under 5.5 per cent, according to Sally Tindall, head of research at Canstar. 'If your rate's above 5.8 per cent, alarm bells should be ringing. That's just the average, it's not even competitive,' she says. If you're keen to stick with the big four banks, CBA, Westpac and ANZ are currently offering variable rates of 5.59 per cent, while NAB is the outlier at 5.94 per cent. These are the advertised rates but there's often wriggle room for the bank to do a better deal if, for example, your loan-to-value ratio is particularly low. For those looking at fixed rates, there's a handful offering just under 5 per cent. But the cash rate is widely expected to fall further in the near term, meaning variable rates will continue to drop. Refinancing options Do-it-yourself refinancing, that's dealing with the bank yourself rather than through a broker, can be a bit of a pain and time consuming but it can also pay off. Your broker isn't always going to tell you the absolute lowest rates on the market, only the ones they can get for you. But if you've got a broker who can get you a competitive rate, it means they do all the legwork and you don't have to spend hours calling up each lender to get the best deal. Keep in mind, broker or not, switching lenders comes with fresh credit checks and invasive financial questions, as well as refinance fees that can range from $500 to $2000. There's also the risk that you refinance and the Reserve Bank cuts rates but your new lender doesn't pass the cuts on. We may not see this in the current cycle, especially since Treasurer Jim Chalmers was straight onto the banks in February ordering them to pass the RBA cut on, but it's a risk to be aware of. If you can't get a lender to give you a rate near the lowest in the market (5.34 per cent), getting it down from say, 6 to 5.5 per cent, will still mean a big saving. But there are traps to watch for, including the impact of stretching out your loan term back to 30 years. Crunching the numbers for The Australian, Canstar has come up with a couple of scenarios that illustrate the point. A borrower with a $600,000 home loan and 25 years left on their mortgage who refinances to 5.5 per cent and keeps their current loan term will potentially save almost $52,000 in interest. But if that same borrower extended the loan term back out from 25 to 30 years, their monthly repayments would drop by $459 but over the life of the loan they'd actually end up paying $55,000 more than if they'd done nothing at all. Canstar's scenario assumes there's two more RBA rate cuts (which we expect this year), bringing the cash rate to a neutral 3.35 per cent. It also assumes the banks pass on these cuts. No frills, digital only Other offerings in the market to look at are the no-frills, digital-only products like CBA's digi home loan and digital bank Up, which is backed by Bendigo Bank. CBA's digi home loan rate for owner-occupiers is at 5.59 per cent while its offering for investors is a competitive 5.69 per cent. Unloan, another digital-only offering backed by CBA is even lower, at 5.49 per cent. Like other lenders, CBA has seen a pick-up in customers looking to refinance since the RBA kicked off its rate-cutting cycle in February, according to its executive general manager for home buying, Dr Michael Baumann. 'It's a good trigger for customers to look at the interest rate they're paying and figure out whether they're on a good deal,' Baunmann says. The bank has seen a doubling of applications on the digital home loan product in the past year. And in a sign of an increasingly competitive market, CBA recently slashed its rates more than the RBA's 0.25 per cent May rate cut. Over the past six weeks the rate for owner occupiers has come down 31 basis points, while for investors it's down 43 basis points. With market watchers tipping two more RBA rate cuts in the next few months, if you get your lender down to a rate of 5.49 or less before the next cut you could be looking at a rate that starts with a 4 within a few months. Business The latest surge in Bitcoin, along with big players making investments in the sector, is retesting interest in the mysterious asset class. But is it for you? Business From July 1 the way the ATO enforces unpaid debts is changing. For some, it means their interest bill is poised to double.
Yahoo
13 hours ago
- Business
- Yahoo
RBA urged to cut interest rates in weeks as unemployment 'blow out' fears escalate
An economist believes the Reserve Bank of Australia (RBA) could have even more reason to cut interest rates next month after employment data was released this week. While the unemployment rate remained steady at 4.1 per cent, 2,500 fewer Aussies were in a job in May compared with April. That followed two months of strong job growth, especially when 89,000 people joined the workforce in April alone. KPMG chief economist Brendan Rynne thinks this strengthens the chance homeowners will get another 0.25 basis point reduction in the cash rate in early July. "At some point - and the likelihood is it will be sooner rather than later - this run of positive outcomes is likely to stop, as non-market sector employment growth in aged care, health care and public sector services slows," he said. Westpac doubles RBA interest rate cut forecast in $350 call for homeowners Centrelink age pension changes coming into effect from July 1 $1,000 ATO school fees tax deduction that Aussies don't realise they can claim Rynne said the private sector won't be strong enough to cope if the public sector slows, and we could soon see unemployment figures "blowing out" in the future. The 2,500 fewer Aussies in a job was far below the 25,000 increase that was expected for May. However, the 4.1 per cent unemployment rate is still below the RBA's expectations of rising to 4.3 per cent this we've already had two rate cuts so far this year, further reductions could be needed as government spending reduces and the economy continues to lag. "This means that the upcoming RBA decision is increasingly important," Rynne said. "The contractionary cash rate settings have done their job from an inflation perspective, despite the likelihood of a bounce in headline inflation as government rebates drop off and recent oil price surges feed their way into the system. "[The] labour force data should be telling the RBA to get ahead of the curve and drop the cash rate by 25 basis points at the next meeting if it wants to balance its dual mandate obligations." The ASX's Rate Cut Tracker analyses market data to assess this very question. Since June 3, this tracker has ascribed an above 80 per cent chance, with three days even seeing an 89 per cent chance. However, June 19 saw that likelihood dip down to 78 per cent. NAB is the only of the Big Four banks predicting a rate cut could come after the RBA's July 7-8 meeting. Commonwealth Bank (CBA), ANZ, and Westpac all believe the next round of rate relief will arrive at the August meeting. CBA and ANZ have predicted only two more cuts remain in 2025 and early 2026. NAB has forecasted three, and Westpac recently doubled its prediction to four cuts. 'If Westpac's forecast comes to fruition and there are four more RBA cuts through to mid-next year, someone with a $600,000 loan could potentially see their monthly repayments drop by almost $350 a month," Canstar data insights director Sally Tindall said. 'This would be a huge relief for households under pressure; however, borrowers should remember this is a forecast, rather than a given." Economist and Yahoo Finance contributor Stephen Koukoulas is sticking to his prediction of a July rate cut. He said the overall unemployment rate had actually been fairly steady in recent months, but it was other factors that would likely see the Board provide more mortgage relief. "The economy is still very subdued, still very weak, and that's an important thing that the RBA is going to be considering," he said. "The global economic conditions and geopolitical issues are clearly negative for our economy."Error in retrieving data Sign in to access your portfolio Error in retrieving data
News.com.au
a day ago
- Business
- News.com.au
Closing Bell: ASX bets on July rate cut as employment data lands
Markets pricing a 78pc chance of rate cut following labour data Unemployment levels remained steady ASX dips on broad weakness in tech, resources and healthcare stocks The ASX ended up in negative territory this afternoon, but not by much (-0.09%). It wasn't the worst performance, considering how many headwinds global markets are dealing with at present. There's the lingering threat of more tariffs from the US alongside the more pointed tension between China and America, the four-year saga of the war between Ukraine and Russia, and now the Israel-Iran conflict has turned up the heat even more. In that context, losing just 0.48% over the last five trading days doesn't sound too bad. Financials, and particularly the seven big banking stocks on our ASX200 Banks index, were the bright spot in today's subdued market. They couldn't outweigh falls in info tech, materials, utilities and healthcare, but Commonwealth Bank (ASX:CBA) added 1.48%, NAB (ASX:NAB) 1% and Westpac (ASX:WBC) 1.7%. The All Ords Gold index was an anchor for the ASX, shedding 1.79% and dragging the 200 Resources and Small Ords down with it. Bets on for July rate cut as employment remains steady The ABS released its Labour Force Australia survey today, revealing unemployment levels have largely remained steady in May. Looking at the seasonally adjusted numbers, both the participation and underemployment rate fell slightly, down just 0.1 point, but the overall number of unemployed people fell by about 2,600 individuals, or 0.4%. Analysts say that's about as expected, as the past 12 months of strong job uptake levels out to more average numbers. "Looking ahead, the labour market's strong run over the past 12 months will slowly fade. Global uncertainty is clouding business decisions and prompting many firms to temper hiring plans," Oxford Economics Australia economist Kar Chong Low told the ABC. Bloomberg's numbers say traders reckon this is a green light for another interest rate cut in the RBA's July meeting, with the market pricing a 78% chance. Going by historical correlation, if the market sentiment stays that high right up until the meeting day, a cut is as close to certain as anything can be in this economy. ASX SMALL CAP LEADERS Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap ATX Amplia Therapeutics 0.23 184% 60634193 $31,424,166 PRX Prodigy Gold NL 0.002 100% 3299814 $3,175,056 SFG Seafarms Group Ltd 0.002 100% 191757 $4,836,599 RPG Raptis Group Limited 0.16 67% 529504 $16,832,873 NHE Nobleheliumlimited 0.019 58% 5390085 $7,194,300 CCO The Calmer Co Int 0.003 50% 3661014 $6,022,707 FTC Fintech Chain Ltd 0.003 50% 167980 $1,301,539 ALM Alma Metals Ltd 0.004 33% 491861 $4,759,036 CTN Catalina Resources 0.004 33% 285724 $7,278,057 SRN Surefire Rescs NL 0.002 33% 5592144 $3,729,668 AHN Athena Resources 0.0065 30% 10001178 $11,329,785 HPC Thehydration 0.013 30% 2783892 $3,833,009 SCP Scalare Partners 0.13 30% 29521 $4,183,502 CP8 Canphosphateltd 0.04 29% 234815 $9,509,576 ALR Altairminerals 0.0025 25% 3717714 $8,593,488 AU1 The Agency Group Aus 0.02 25% 1341209 $7,033,225 OEL Otto Energy Limited 0.005 25% 1332565 $19,180,039 OKJ Oakajee Corp Ltd 0.02 25% 60000 $1,463,136 OMG OMG Group Limited 0.005 25% 1318028 $2,913,180 OVT Ovanti Limited 0.0025 25% 156524 $6,011,030 REZ Resourc & En Grp Ltd 0.02 25% 1124092 $10,746,226 ROG Red Sky Energy. 0.005 25% 2050000 $21,688,909 ELS Elsight Ltd 1.335 22% 1220702 $198,097,920 IFG Infocusgroup Hldltd 0.011 22% 12471483 $2,483,656 MQR Marquee Resource Ltd 0.011 22% 1914418 $5,024,723 Making news… Amplia Therapeutics (ASX:ATX) has achieved a second complete response in its 55-patient Accent trial evaluating FAK inhibitor narmafotinib in combination with chemotherapy in advanced pancreatic cancer. It's big news, as complete responses are very rare in patients with advanced pancreatic cancer. A complete response (CR) means a disappearance of all tumour lesions has been maintained for more than two months. A seminal study demonstrating the effect of chemotherapies gemcitabine and Abraxane in advanced pancreatic cancer reported only one complete response out of 431 patients. Peak Minerals (ASX:PUA) reckons it's sitting on a monazite-heavy mineral assemblage at Minta Est, part of the Minta rutile project in Cameroon. The company's sampling has revealed monazite content levels of up to 73%, alongside 35% rutile and 28% zircon. Monazite is valued at about 3-fold rutile and zircon, offering a potentially lucrative opportunity. PUA also averaged 2.4% heavy mineral content over 47 drill holes covering 121 square kilometres, with every hole returning mineralisation. Surefire Resources (ASX:SRN) has kicked off 5,000m of drilling at its Yidby gold project in WA, looking to expand the project's gold footprint. The drill bit will also be testing new targets at the Fender and Marshall prospects and an extensive gold geochemical anomaly at the Money target, which will feel the drill's bite for the first time. Hydralite, better known as The Hydration Pharmaceuticals Company (ASX:HPC) on the ASX raked in US$308k in unaudited sales for the month of May, up 34% on April and 18% on May last year. It's a milestone for the company as the highest monthly total for the 2025 FY, underpinned by gross margins of 66.5%. Resources & Energy Group (ASX:REZ) is poised to receive a cash injection of $1 million and 33 million QMines (ASX:QML) shares after getting the green light for the sale of the Mount Mackenzie gold project from due diligence teams. The shares will be voluntarily be held in escrow for 12 months, offering REZ upside to whatever QML finds at Mount Mackenzie through its new share holding in the company. ASX SMALL CAP LAGGARDS Today's worst performing small cap stocks: Security Name Last % Change Volume Market Cap AFA ASF Group Limited 0.004 -33% 91846 $4,754,385 AXP AXP Energy Ltd 0.001 -33% 161237 $10,027,021 LNR Lanthanein Resources 0.001 -33% 5463026 $4,215,272 TKL Traka Resources 0.001 -33% 1320000 $3,188,685 AMI Aurelia Metals Ltd 0.2175 -29% 64448869 $516,234,655 BLU Blue Energy Limited 0.005 -29% 4258787 $12,956,815 VN8 Vonex Limited. 0.018 -28% 591400 $18,815,088 EEL Enrg Elements Ltd 0.0015 -25% 40307965 $6,507,557 BAS Bass Oil Ltd 0.023 -23% 4933335 $8,714,251 PGY Pilot Energy Ltd 0.006 -20% 10175643 $16,189,950 FAU First Au Ltd 0.004 -20% 2592000 $10,359,966 LU7 Lithium Universe Ltd 0.008 -20% 10180704 $7,859,796 MMR Mec Resources 0.004 -20% 271460 $9,248,829 RLG Roolife Group Ltd 0.004 -20% 142376 $7,963,906 NUC Nuchev Limited 0.185 -18% 68794 $32,926,343 PNT Panthermetalsltd 0.014 -18% 3023033 $5,115,377 AJL AJ Lucas Group 0.005 -17% 3000000 $8,254,378 DGR DGR Global Ltd 0.005 -17% 598401 $6,262,176 GLL Galilee Energy Ltd 0.005 -17% 2818092 $4,243,157 OLI Oliver'S Real Food 0.005 -17% 279999 $3,244,392 PVT Pivotal Metals Ltd 0.01 -17% 13339185 $10,886,711 LMG Latrobe Magnesium 0.008 -16% 4544607 $24,952,605 MEK Meeka Metals Limited 0.1475 -16% 49351910 $440,248,405 AVD Avada Group Limited 0.11 -15% 746 $11,041,553 CR3 Core Energy Minerals 0.011 -15% 1347637 $5,133,013 IN CASE YOU MISSED IT ADX Energy (ASX:ADX) has progressed its shallow gas ambitions in Austria with the maturing of seven prospects to drill-ready status. The prospects hold mean prospective resources totalling 29 billion cubic feet of gas. EZZ Life Science (ASX:EZZ) has officially entered the US with four new supplements under its new brand, EZZDAY. TRADING HALTS African Gold Ltd (ASX:A1G) – resource upgrade Alligator Energy Ltd (ASX:AGE) – cap raise Estrella Resources Ltd (ASX:ESR) – exploration update Microba Life Sciences Ltd (ASX:MAP) – cap raise Prominence Energy Ltd (ASX:PRM) – acquisition & cap raise Universal Biosensors Inc (ASX:UBI) – cap raise Magellan Asset Management (AASF) – operational issues Savana US Small Caps Active ETF (ASX:SVNP) – IT/maker disruptions At Stockhead, we tell it like it is. While ADX Energy and EZZ Life Science are a Stockhead advertisers, they did not sponsor this article.
