RBA tipped to keep cash rate at 2% due to inflation
According to expert investment dealer TD Securities inflation rose by 0.2% last month, resulting in the inflation gauge growing by an ideal 2% in the 12 months to December.
Chief Asia-Pacific Macro Strategist, Annette Beacher said given these figures of inflation, the RBA will probably keep the rates as is when they meet to decide on the cash rate next month.
“We remain of the view that the RBA is likely to leave the cash rate at 2% this year,” she said. “Although, the rocky start to the year has increased the odds that [should the RBA make a] rate cut [it would] prove to be beneficial.”
The Chief Strategist also noted that while the weak Aussie dollar boosted imported prices, domestic inflation counteracted it nicely in December.
According to TD Securities, inflation was evident in the prices of goods and services. December in Australia saw fruit, vegetables, meat and seafood increase by 0.8%, and holiday travel and accommodation by a seasonal 2.3%. This was offset by the falling price of fuel by 3.1%, non-alcoholic drinks by 2.7% and rent by 0.9% in December.
RELATED: Lack of confidence in the Chinese Economy sends Aussie sharemarket into a panic
As predicted in light of the Chinese Yuan currency dip, the Aussie dollar has also been affected. In fact, as the Sydney Morning Herald reported yesterday, the dollar dipped to the lowest level last week since 2009.
Like the RBA consensus, TD Securities has predicted headline inflation this quarter will increase by 0.3%, which is 1.7% more than a year ago. They also forecast the underlying inflation to increase by 0.5% in the quarter, making that an annual ideal rate of 2.0%.
If interest rates are in your periphery and you’re wanting to secure a competitive rate to buy property or refinance, head to Mozo’s home loans hub to compare now.
Home loan comparisons on Mozo - last updated 29 March 2024
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Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.15% p.a. variable6.40% p.a.Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
CompareCompareOffset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
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- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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Read our Mozo Review to learn more about the Macquarie Offset Home Loan
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Mozo experts choice awards won:
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Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- Upfront fees
- $134
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- $10.00 monthly
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- $350.00
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Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
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Mozo experts choice awards won:
- Fixed Rate Home Loan - 2024
- Investor Fixed Home Loan - 2024
Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 2 years6.24% p.a.Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
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Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
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- 6.29% p.a.
fixed 3 years
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- 6.30% p.a.
- interest rate
- 6.29% p.a.
fixed 3 years
- comparison rate
- 6.30% p.a.
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- $0
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- $0.00
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- $395.00
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- yes, up to $25,000 during fixed period - fee applies
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- no
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- no
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- 95.00%
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Read our Mozo Review to learn more about the BCU Bank Fixed Rate Home Loan
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Featured Product
Ultra Low Rate <95% LVR
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.30% p.a. variable6.58% p.a.Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
CompareCompareUltra Low Rate <95% LVR
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
- interest rate
- 6.30% p.a. variable
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- 6.58% p.a.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
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- $790
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- $0.00
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Featured Product
Mozo experts choice awards won:
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Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
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For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 5.99% p.a. variable
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- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
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