At its September meeting today, the Reserve Bank of Australia Board left the official cash rate at a record low 2.50% for the 13th consecutive month and rates are likely to stay put for the remainder of the year.
Governor Glenn Stevens said in a statement that business conditions are gradually improving and some recovery in household sentiment after a weaker period around mid year, suggests moderate growth in the economy is occurring.
"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years."
The stable economy, flat inflation and a rise in unemployment suggests no major alteration to the official cash rate in the coming months, however, experts predict a rate rise some time next year, as the expected transition away from mining led growth to other sectors proceeds.
Spring is in the air, the flowers are in bloom...making it the perfect time to spring clean your savings and see your green grow.
While interest rates are looking a bit drab for savers, a few financial providers have recently lifted their rates, including RaboDirect with its 90 Day Notice Saver account which grew from 3.90% to 4.00%.
Over August the savings world welcomed two newcomers, the Bankwest Hero Saver account and the CUA eSaver Plus (replacing the eSaver account) both with a 4.00% interest rate, as long as you deposit at least $200 a month and make no withdrawals.
If your savings account has an interest rate sitting below the 4.00% mark it’s time to shift your saving up a gear by searching the savings accounts market here.
Fixed rates still remain competitive across the board with the lowest 1 year fixed rate sitting comfortably at 3.89% offered by Newcastle Permanent and the best 3 year at 4.59% from ME Bank and Newcastle Permanent Building Society.
On the variable rate side of the market, online lender loans.com.au still sits at the top with its Dream Home Loan Variable at 4.54% and first home buyers will be glad to hear their loan-to-value ratio has increased from 80% to 90%. Mortgage House also now offers a rate of 4.54%, but limited to those with a loan-to-value ratio of up to 60%.
Discover more great value home loans in Mozo’s buzzing home loan hub.
Read our Last month Reserve Bank interest rates update
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