RBA doesn’t budge, keeps interest rates at 0.75% in November

By Niko Iliakis · · 4 min read
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It looks like the Reserve Bank will be taking a breather this month. Despite some chatter about consecutive cuts, it decided against decreasing the cash rate in its November meeting this afternoon, keeping it at a record low 0.75%.

"Employment has continued to grow strongly and has been matched by strong growth in labour supply, with labour force participation at a record high," said RBA Governor, Philip Lowe.

"After a soft patch in the second half of last year, a gentle turning point appears to have been reached. The central scenario is for the Australian economy to grow by around 2¼ per cent this year and then for growth gradually to pick up to around 3 per cent in 2021."

RELATED: October rate cut: Which banks have cut home loan rates already?

While many were betting on a November cut only a few weeks ago, opinion shifted following Lowe’s appearance at an International Monetary Fund panel in Washington in October. 

There, Lowe talked up improved conditions on the job front, signalling that the RBA was content to step back for a bit and give the low interest rates more time to deliver results.

The decrease in unemployment comes at a critical time. Most Australians have cottoned on to the fact that the economy is quite vulnerable at the moment — a second set of back-to-back cuts would have eroded consumer confidence further.

Not long after, results from the September quarter registered a marginal improvement in inflation - up from 1.6% to 1.7% - which further eased some of the pressure currently on the RBA.

"The central scenario remains for inflation to pick up, but to do so only gradually. In both headline and underlying terms, inflation is expected to be close to 2 per cent in 2020 and 2021," Lowe said in today's minutes.

What’s the outlook for the economy?

While Lowe is currently leaning into his role as cheerleader by playing up the economy’s strengths, it’s clear the country still isn’t tracking in the preferred direction.

A lot of that comes down to a lack of government support. According to Mozo’s banking expert, Peter Marshall, since the RBA began cutting interest rates back in June, it’s had to shoulder much of the responsibility of keeping the economy afloat.

“Aside from the tax refunds, the government has mostly been trying to jawbone banks to drop their rates and to lend more money,” he said.

What do home loan interest rates currently look like?

Despite this month’s decision to keep the cash rate unchanged, the previous three cuts have seen home loan rates enter record low territory.

At this point, most of the rate changes made in response to October’s cut have been implemented, giving us an average variable rate of 3.73% p.a. At the time of writing, the top four slots in our database are occupied by the following lenders.

Variable rate home loans (OO, P&I)

LenderHome loanRate
HomestarStar Essentials Home Loan2.74% p.a. (2.77% p.a. comparison rate*)
Loans.com.auSmart Home Loan2.88% p.a. (2.90% p.a. comparison rate*)
UBankUHome loan - Discount Offer2.99% p.a. (2.99% p.a. comparison rate*)

With most banks only passing on a portion of last month’s cut to variable home loan customers, competition is expected to remain quite strong. 

Online lenders in particular have been locked in a race to keep rates low, and we’ve been able to count on a handful to pass on the full rate cut on all three occasions this year.

What about savings accounts and term deposits?

Unfortunately, we’ve also seen plenty of cuts levelled against savings accounts and term deposits. Right now, the average ongoing savings accounts rate is a paltry 0.99% p.a. And among the big banks, it’s even lower — 0.59% p.a.

The good thing is that when the RBA does cut rates next, banks will likely exercise a bit more restraint when reducing savings account rates than they have in the past. 

Plenty of Australians have been grumbling about cuts to deposits lately, and according to Marshall, it’s only a matter of time before banks start reasserting their need to maintain their margins.

“Rates have dropped really drastically over the last six months, and I think banks will have to do something soon otherwise they’re going to start running out of deposit funds,” he said.

For a look at the kinds of rates currently out there, pay a visit to our savings account comparison page. And if it’s home loans you’re after, be sure to check out our home loan comparison page, where you’ll be able to filter your search to find one that suits you.

*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 the amount and term you entered.

Read last month's Reserve Bank interest rates update.

Home loan comparisons on Mozo

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 27 July 2024 Important disclosures and comparison rate warning*

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  • Unloan Variable

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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.

  • Basic Home Loan

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    6.16 % p.a.
    Initial monthly repayment
    $3,043
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    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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    Initial monthly repayment
    $3,027
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    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

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    6.09 % p.a.
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    6.13 % p.a.
    Initial monthly repayment
    $3,027
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    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
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    6.34 % p.a.
    Initial monthly repayment
    $2,899
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    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
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    Interest rate
    5.99 % p.a.
    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.

  • OMG Home Loan

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    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
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    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

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    Fixed 3 years
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    6.34 % p.a.
    Initial monthly repayment
    $2,995
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    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

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    6.01 % p.a.
    Variable
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    6.14 % p.a.
    Initial monthly repayment
    $3,001
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    Get 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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    Interest rate
    6.09 % p.a.
    Variable
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    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
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    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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    6.14 % p.a.
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    6.38 % p.a.
    Initial monthly repayment
    $3,043
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    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

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    6.14 % p.a.
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    6.39 % p.a.
    Initial monthly repayment
    $3,043
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    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.

  • Basic Home Loan

    • Fixed
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    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
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    • Fixed
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    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
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  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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.