RBA leaves interest rates on hold at 1.50% this Melbourne Cup Day

Tuesday 07 November 2017

Article by Kelly Emmerton

If you bet on the Reserve Bank leaving the cash rate unchanged on Melbourne Cup Day, then come forward to collect your winnings.

As expected, the official cash rate has remained on hold at 1.50% for November, largely, it seems, because there was no strong case for a change up or down.

This is the sixth year in a row that the RBA has held rates steady on race day, despite November historically being a favourite time for rate changes, with moves from the RBA every year from 2006 to 2011, and Australia’s last rate rise in November 2010.

According to Mozo Data Manager Peter Marshall, with Central Banks in the UK and US lifting rates recently and domestic economic indicators starting to look up, the next move from the RBA may well be a rate rise.

“At the moment, the chances of the Reserve Bank starting to push rates up are looking good. Having said that, I wouldn’t expect it to happen for another 6 months or so, and a lot could change between now and then,” he said.

Home loan borrowers can pick a winner

Home loan lenders started cutting rates last month, and this month has continued the trend. In fact, as lenders slash rates, there’s a new frontrunner on the home loan scene with a rock bottom variable rate of 3.39%.

Yet again, owner-occupiers making principal and interest repayments came out on top with most of the recent rate cuts, particularly on variable rate mortgages and short fixed terms of 1 or 2 years.

Check out these hot home loans for November and pick yourself a winner:

Best variable rate home loan offers

Head over to our comparison table to see other top variable rate home loans.

Best fixed rate home loan offers

  • 1 year - 3.49% - Greater Bank (comparison rate: 4.47%)
  • 2 year - 3.65% - IMB Bank (comparison rate: 4.84%)
  • 3 year - 3.69% - Auswide Bank (comparison rate: 4.87%), Move (comparison rate: 3.96%), SCU (comparison rate: 4.70%)
  • 4 year - 3.99% - bcu (comparison rate: 4.59%), Greater Bank (comparison rate: 4.48%)
  • 5 year - 3.99% - Greater Bank (comparison rate: 4.47%) Suncorp (comparison rate: 3.88%)

Check out other fixed rate home loan options in our comparison table.

Rates for savers are off the pace

On the other side of things, savers aren’t quite so lucky. Most rate changes over the past month have been rate cuts, a trend continuing on from previous months. And although the next RBA change is set to be a rate increase, that may not happen until mid-way through next year.

So if you’re looking to grow your rainy day fund (with something a little more secure than a bet on the horses) then it’s more important than ever to make sure it’s sitting in the best possible savings account or term deposit.

Best savings accounts

Check out our savings account comparison table to find other high interest options.

Best term deposits

Check out other great term deposit options with our term deposit search tool.

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