Rate Rises scenarios, page-6

I think RBA raising from 0.1% to 1.0% would cause the banks to raise term deposits from almost nothing, to barely above nothing. So not many people wanting to withdraw the cash to make a few cents interest in between trades.

At some point, Selfwealth would start paying interest to clients too, around RBA 1.0%.





CBA paying out 0.07% now when RBA is at 0.1%. If locking up $10,000 for 3 months with them, you earn $1.75. Not worth the time! Even at 0.7% PA (maybe the rate if RBA raised to 1.0%), then you'd get $17.50. Still nothing compared to the lost opportunity in the market.