RBA interest rates to stay at 1.50% over Christmas

The Reserve Bank board’s last meeting of 2017 brought no change to the official cash rate, with the record low 1.50% locked in now until the board meets again in February next year.

The result was no surprise for the majority of analysts, with predictions widely placing the next change no sooner than mid-2018.

In his statement, RBA Governor Philip Lowe said employment figures were strong, though inflation remained sluggish.

“Inflation remains low, with both CPI and underlying inflation running a little below 2 per cent. The Bank's central forecast remains for inflation to pick up gradually as the economy strengthens," he said.

As for interest rates in 2018, Mozo Data Manager Peter Marshall said the Reserve Bank will be playing the waiting game for a while still.

“If inflation, GDP, and retail sales figures don't improve the RBA could be tempted to start considering further rate cuts. However, high levels of household debt at the moment mean they will be wary of lower rates prompting people to take on even more debt,” Marshall said.

“I believe the RBA will sit on its hands as long as possible even if conditions are less than ideal. That means we're likely in for a long period with rates at current levels, with the possibility of any increases off in the distant future for now.”

No major changes for owner-occupier home loans

It’s been a quiet month for owner-occupiers, with very few changes to home loan rates. Most of the changes that did occur were very minor cuts to variable rates.

Investors on the other hand have had some good luck, with several lenders increasing LVRs on investment loans. These borrowers also benefited from a few minor rate cuts to fixed rates.

Take a look at some of the best home loan rates around below:

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%)
  • 4 year - 3.99% - 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.

Bah humbug: Savers still down in the dumps

Aussies trying to build up a rainy day fund have been struggling with low rates for a while now and things aren’t looking much brighter this month. Although there were only a handful of changes to both savings account and term deposit rates, nearly all of them were decreases.

But it’s not all storm clouds for savers. For those who know where to look, there are still a few market leaders offering returns of up to 3.00%.

Check out some of the top offers below:

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.

Read last month's Reserve Bank interest rates update.

Top home loans - last updated 25 January 2022

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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, loan amount and term entered. 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.

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