RBA October decision: Cash rate remains at 2.50%

At its monthly meeting today, the board of the Reserve Bank of Australia decided to leave the official cash rate on hold at 2.50%.

In a statement, Governor Glenn Stevens said "...the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed".

What does that mean in layman's terms?

Put simply, today's decision is a cautious one.

Over the past year, the Reserve Bank has been trying to drive down the Aussie dollar in a bid to make non-mining export sectors more competitive. Though a sharp descent was recorded in April, the dollar is showing signs of a resurgence and worrying exporters across the country.

This month, the RBA Board are playing it safe by keeping rates on hold. In the coming months, however, they'll be keeping a close eye on the exchange rate and the effect it is having on the export sector. Further rises in the dollar may well warrant another cut to the official cash rate. In fact, economists across the country are forecasting that another cut is on the cards for November - stay tuned!

What does this mean for borrowers?

With the Reserve Bank sitting on their hands, it's unlikely that any of the banks will adjust their rates this month. But that doesn't mean you should put up with paying too much on your home loan. Mortgage rates are at rock bottom so you can save thousands today by switching to a cheaper loan. Top options right now include

• loans.com.au Dream Loan Express 4.55% variable rate (4.57% comparison rate)
• IMB introductory variable 4.66 variable (5.40% comparison rate)
• iMortgage Essential 4.69% variable rate (4.71% comparison rate)

Unsure if a home loan lender is right for you? Why not have a chat with Mozo's Home Loan experts? Find out more here.

And for savers?

Though rates are at record lows, there are still some banks who are offering great rates. Now is as good a time to shop around as any. Here are our top picks

• UBank USaver with Ultra: 4.77% special rate
• RAMS RAMS Saver: 4.51% special rate
• ING Direct Savings Account Maximiser: 4.51% promo rate