One, two, three. Rates don't move.

Three in a row! Rates stay put for the third month in a row, heralding great relief for homeowners and Julia Gillard alike. After the Reserve Board's meeting, Glenn Stevens explained on-trend growth, inflation close to target and a still uncertain global outlook all led to the eventual decision.

In sweet relief for the embattled PM, unlike the Libs of three years ago, Labor has been spared millions of borrowers scorned by an ill-timed rate rise heading to the polls with empty pockets and itchy voter-fingers.

Despite what looked like strong impetus for change less than a fortnight ago, last week's release of weaker than expected inflation figures showing underlying inflation at just 0.5 per cent for the June quarter, and CPI barely outside the target band of 2-3% put the brakes on any potential rise. The decision to raise rates early in the post-recession recovery last year is now seen as pivotal for the current stability.

The release of 'soft' building approvals and retail sales data did not deviate far enough from expectations to influence the Board, SMH said. Whilst according to Sky News, mixed signals from the manufacturing and housing sectors only supported the hypothesis that the economy was not generating enough "heat" to warrant a cooling bucket of monetary (non) liquidity.

Is it only a holiday?

Economists are split over when the next interest rate rise will be, but are unanimous in agreeing there is one on the cards. Westpac economist Huw McKay posits a break from rate hikes until 2011, "once the consumer starts to calm down and basically stop worrying about what's happening in Europe". CommSec and NAB economists are predicting steady rates for months to come, but do not rule out a hike before the end of the year.

Whatever the case, the news is certainly good for Australian homeowners.

It's time to act

Just because rates are happy to stay where they are, doesn't mean you should be! The current period of steady rates means comparing home loans has never been easier. There are huge savings to be had out there, so put on your Mozo cap and start comparing, switching and saving.

Try Mozo's free online rate change calculator.

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Read our July Reserve Bank interest rates update