bank interest

Has anyone noticed the extraordinary interest rate return for deposits of late?

Westpac recently had a 5yr term deposit fixed at 8% - extraordinary!

What is perhaps even more extraordinary is the sudden sizeable drop in this fixed interest rate. Only in the last few days (since RBA remarks) the interest rate dropped 0.75%. Extraordinary.

From this very simple isolated example I am getting the impression that banks are showing signs of uncertainty re: future market conditions. At the 8% interest rate Westpac was anticipating aggressive interest rises into the future. Now, in less than a month they have slashed this forecast by 0.75%.

By the way are these the early signs of Fiat backwardation? Is there such a phenomena? Good sign for gold if this is the case.

GC