RBA October decision: Cash rate remains at 2.50%

By Mozo Editorial · · 2 min read
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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)

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

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 18 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
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    Interest rate
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    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    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 online in minutes.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.99 % p.a.
    Fixed 2 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,899
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    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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* 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.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.