RBA keeps official cash rate steady at 2% for Christmas

By Kelly Emmerton · · 3 min read
Fact Checked
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Economist’s predictions have proved correct as the RBA announced today that the official cash rate will once again hold steady at 2% throughout the holiday season.

Stable economic times, including a six-month low in the unemployment rate and a rising Aussie dollar have meant that the RBA again saw no reason to lower rates this month. This continues a trend of stability that has been in effect since May 2015, when the last rate change occurred, with the cash rate dropping by 25 basis points.

In a statement Governor Glenn Stevens said that, "Low interest rates are acting to support borrowing and spending. While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative."

What does this mean for your home loan?

We have seen a downward trend in fixed rates in the past few weeks, with Commonwealth Bank cutting fixed rates for owner occupiers by 20 basis points for the 5 year term, and Hume Bank cutting all terms from 1 to 5 years by 10 basis points, among many others.

On the other hand, even though the RBA has elected to keep the cash rate steady, many of the big banks put variable rate increases into effect last month.

But it’s not all doom and gloom for variable interest rate borrowers, as there are still some great deals to be found. Here are the top variable rate offers for an owner occupier with an LVR under 80%:

To check out what other deals are on offer, use our home loan comparison tool.

What about your savings account?

While a stable rate is great news for homeowners, it’s not such good news for those saving for Christmas. Over the past few weeks we have seen a slight decline in savings rates from three of the four major banks.

Thankfully, there are still some challenger brands offering competitive deals in the lead up to the festive season.

Here are the top ongoing savings account rates (conditions apply):

  • ME Online Savings Account: 3.55% if you make a weekly purchase using PayPass Tap & Go on your ME EveryDay Transaction Account
  • ING Direct Savings Maximiser: 3.50% if you have an Orange Everyday and deposit $1,000 each month
  • RAMS Saver Account: 3.40% when you deposit $200 per month and make no withdrawals

Here are the top savings accounts with introductory rate offers (conditions apply):

  • RaboDirect High Interest Savings: 3.50% for the first 4 months
  • Citibank Online Saver: 3.40% for the first 4 months
  • Bank of Sydney SuperRate Account: 3.30% for the first 4 months

To find a savings account that will make the most of your cash stash, head over to our savings account comparisons page and get started!

If you’d like to know more about the ins-and-outs of banking, subscribe to our monthly newsletter Mozo Banking Roundup. 

Read last month's Reserve Bank interest rates update.

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Last updated 24 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

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    6.28 % p.a.
    Initial monthly repayment
    $2,899
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    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

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    $2,915

    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.

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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.

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    Initial monthly repayment
    $3,011
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    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

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    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

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    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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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.

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