Commonwealth Bank (CBA) and Westpac have removed special offers and reduced their interest rates on a range of term deposits this week. CBA has cut its special rates by between 5 and 15 basis points this week, while scrapping its 12-month 4.50 per cent special rate altogether.

The Australian dollar has leapt US5¢ since August and is expected to climb further as other central banks cut interest rates and the RBA stays put.

Australia’s central bank signaled it will keep its key interest rate at a 12-year high in the near term as it struggles with stubborn inflation that’s holding it back from joining a global easing cycle.

The RBA board has left the cash rate on hold at 4.35 per cent and continued to rule out a near-term rate cut with as underlying inflation remains too high.