Macquarie says Australian banks are profiting from low term deposit rates

Macquarie suggests banks have seen a big increase in their term deposit spreads as swap rates have risen faster and higher than term deposit rates. (Image: File)

Dan Brunskill

Mon, 20 Jun 2022

The Financial Market’s Authority’s annual investor survey last week showed that for the first time ever direct equity investments are now more common among New Zealanders than term deposits. This is likely partly due to the increased accessibility of shares and managed funds – thanks to the dawn of retail platforms – but has also been driven by ultra-low interest rates which have forced investors to seek yield elsewhere. However, Australian researchers think term deposit rates may be lower than market condition...

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