RBA keeps cash rate at 2.25% after Easter break

The Reserve Bank of Australia Board has met for its post Easter meeting and has left the official cash rate at 2.25%.

Many economists are tipping the Board will slash the official cash rate in the coming months, due to several economic factors including a slump in iron ore prices, rising unemployment and weak consumer confidence.

Governor Glenn Stevens said in a statement that financial conditions are very accommodative globally, with long-term borrowing rates for several major sovereigns at all-time lows and financing costs for creditworthy borrowers remaining remarkably low.

"At today's meeting the Board judged that it was appropriate to hold interest rates steady for the time being. Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target."

Mortgage movers

While the cash rate will remain on hold for April, since the RBA Board lowered the official cash rate in February there has been plenty of action in the home loan world.

Now’s a good time to fix your home loan with a range of competitive deals, such as Hume Bank’s tempting 3.6% 1 year fixed rate, Newcastle Permanent’s 3.89% 2 year fixed rate, as well as its 3.99% 3 year fixed rate. And let’s not forget Homestar who recently slashed an impressive 120 basis points off its 4 year fixed rate home loan to 4.35% and 125 basis points off its 5 year rate down to 4.40%.

Homestar also shone in the variable rate world, alongside loans.com.au with a variable rate of just 4.23%. However, the real star was Mortgage House cutting the competition with its 4.19% variable interest rate (only available for LVR’s less than 50%).

Want to find the mortgage winner for you? Compare home loans in a flash with Mozo’s home loan comparison tool.

Savings account heroes

With savings account rates sitting below the 4% mark, savers have been hit hard by the RBA’s decision to cut the official cash rate to record lows. But with the right account you can still see your cash stash soar.

RAMS continues to deliver the best ongoing savings account rate (with conditions), keeping its Saver at a competitive 3.91%. If you’re a new customer ME Bank will reward you with a tempting introductory rate at 3.85%. And if you’re a ‘no-strings attached’ kind of saver, Rural Bank ONE’s Saver has the best rate at 3.00%.

Want to see more savings account heroes? Head on over to Mozo’s savings accounts hub to compare deals today.

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