Melbourne Cup day next likely RBA rate cut

Australians with home loans will have to wait until Melbourne Cup day for the next interest rate cut from the Reserve Bank reports AAP.

In the minutes from August's RBA board meeting it was stated that, "members agreed that the bank should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates."

The RBA said that because of the recent fall in the dollar local economic growth was likely to stay below average over the coming year.

Scott Haslem, USB Australia chief economist told APP that the central bank is unlikely to move until after September quarter inflation figures are released on October 23.

"Their desire not to signal an imminent intention, nonetheless suggests they are unlikely to adjust rates at their September and October meetings, ahead of the next inflation print, making November the next live meeting."

The 2.5% cash rate is a new record low making this the best time for borrowers to save on their home loan. The market's lowest variable rate is Blackboard Special home loan at 4.49% variable (4.51% comparison*) and the top 1 year fixed rate is 3.99% from Greater Building Society. To compare home loan rates go to Mozo.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The
comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.