RBA February meeting: New Year, new official cash rate!

Rebeccah Elley

Tuesday 03 February 2015

The Reserve Bank of Australia has met for its first Tuesday board meeting of 2015, cutting the official cash rate to 2.25%.

In a statement Governor Glenn Stevens explained that for the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. 

"At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target."

The rate change comes after the RBA board left the official cash rate a historic low 2.5% for 17 months. Where rates go over the year will depend largely on unemployment data, the housing market and petrol prices. So watch this space…

Home loan low down

Looking for a sharp rate loan? Then you’ll be happy to hear a handful of providers have joined the rate cut party in the New Year.

Heritage Bank shook 40 basis points off its Standard Variable (now 4.89%) and Discount Variable loans (now 4.59%) for the life of the home loan. Get in quick because the offer is available for a limited time!

And in the fixed rate world, Greater Building Society shimmied 5 basis points off its 2 year loan to 4.34% and threw a generous 15 basis points off its 5 year loan to 4.54%.

See more wow-worthy interest rates in Mozo’s bustling home loan hub here.

Credit card keepers

If you just received a shocking post Christmas credit card bill, a balance transfer or introductory rate credit card could be just what your finances need. In fact, there are more BT and introductory rates on offer now, than there were before Xmas!

You’ll get plenty of breathing room with Citibank’s generous 0% balance transfer offer for 24 months, plus the Platinum card comes with complimentary perks like concierge, travel insurance and purchase protection.

If you prefer banking with the Big Four, check out NAB’s 0% for 12 months offer for both purchases and balance transfers, Westpac’s 0% for 14 months balance transfer (16 months on Mozo) and 0% for 3 months introductory purchase rate and ANZ’s 0% for 16 months balance transfer rate available on its Low Rate, Low Rate Platinum, and Platinum cards.

Ready to ditch the Christmas debt? Head on over to Mozo’s balance transfer hub here.

Savings superstars

While some providers have made recent cuts to their savings account rates, thankfully there are still a few accounts that can help see your savings soar in 2015.

UBank’s USaver remains the best ongoing bonus rate in the market at 4.02%, followed by ING DIRECT’s Savings Maximiser (if you hold an Orange Everyday account), or Bankwest’s Hero at 4.00%

And you can enjoy money for nothing with Citibank’s Plus Transaction Account 5% cashback offer (up to $500 per month) on Visa payWave “tap and go” transactions under $100, as long as you deposit $2,000 or more a month. Get in quick the offer expires after 31 May 2015!

Rescue your savings in 2015, by searching our savings account hub for a great deal. 

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