At the August Board meeting, the Reserve Bank of Australia has left the official cash rate at a historic low 2.50% for the 12th consecutive month.
Governor Glenn Stevens said in a statement that financial conditions overall remain very accommodative. "Long-term interest rates and risk spreads remain very low. Emerging market economies are receiving capital inflows. Volatility in many financial prices is currently unusually low."
Economists predict rates are likely to remain steady, until the Central Bank can see how the economy pans out after weakening in the retail sector post-Budget and the fall in mining investment.
If you haven’t heard, over July there has been a fixed rate home loan war. That’s right, the banks are contesting for your business by cutting their fixed rate home loans below the 5% mark.
Commonwealth Bank threw the first epic punch cutting its 5 year fixed home loan from 5.69% to 4.99%, with Westpac following suit to 4.99% and NAB kicking 70 basis points off its 5 year rate to 4.99%. However, ME Bank remains the champion with its 5 year fixed rate home loan at a competitive 4.94%.
See how other home loans compare in Mozo’s home loan hub.
There were also a few punches thrown in the savings account world with Commonwealth Bank increasing both the ongoing bonus rate on its GoalSaver, and introductory rate on its NetBank Saver to 4.00% from 3.81% and Westpac lifting the 3.82% on its eSaver to 4.00%.
Discover more standout savings deals in our savings account section here.
Read our Last month Reserve Bank interest rates update
Keep up to date with rates info!Sign up