RBA going steady in February as 1.50% cash rate remains unchanged

The Reserve Bank board has kicked off 2018 in exactly same way it ended 2017 - with no change to the official cash rate which remains steady at 1.50%.

Today’s announcement came as little surprise for most experts, with many suggesting that any rate change would be unlikely until the middle or end of the year at the earliest.

In his statement, Philip Lowe said that despite an uptick in the global economy and steady employment growth in Australia, inflation rates continued to remain low.    

“The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual,” he said.

While today’s announcement marked the 17th straight meeting of the cash rate staying on hold, Mozo Product Data Manager Peter Marshall suggested that the RBA may be interested in raising rates at some point in the near future, though factors such as wage growth and inflation may be holding them back.

“The RBA board has indicated that it wants to increase rates, but with wages remaining flat and inflation still sitting below 2% they just cannot do it at present,” Marshall said.

“However, if the global economy continues the way it’s going then there’s a good chance Australia will benefit from some of that strength and perhaps towards the middle or latter part of the year the RBA might have the scope it needs to increase rates - an opportunity I think they’ll jump at when they can. But a lot could happen in the next six months.”

Competitive rates make February a good time for borrowers

With the official cash rate at an historic low and a potential rate rise still a while off, borrowers still have an opportunity to take advantage of a range of competitive rates - particularly on home loans. But this may not last for long, with Mozo data indicating that fixed rates could be starting to climb as expectations surrounding an RBA rate rise continue to increase.

Check out some of the lowest home loan rates currently* in the Mozo database:

Best variable rate home loan offers

Best fixed rate home loan offers (3 year term)

  • Move Lockit Home Loan - 3.69% (comparison rate: 3.96%)
  • Greater Bank Ultimate Home Loan - 3.74% (comparison rate: 4.45%)
  • Newcastle Permanent Fixed Rate Home Loan - 3.74% (comparison rate: 4.59%)
  • Queenslanders Credit Union Fixed Rate Home Loan Special- 3.78% (comparison rate: 4.36%)

Savers forced to remain patient

While the the unchanged cash rate may be good news for borrowers, Australians looking for the most rewarding place to stash their savings are finding it harder, with a number of cuts to both savings accounts and term deposit accounts in recent months.

“Investors are going to need to be patient because there’s no rate increase likely in the foreseeable future - it’s probably going to be at least six months away if things go well,” said Marshall.

“That doesn’t mean that there isn’t any value in the market, but it does require savers to do their due diligence and a bit of extra legwork when it comes to finding a rewarding deal.”

To help you get started, here are some of the best ongoing savings account and term deposit rates currently* in the Mozo database:

Best ongoing savings account offers

  • AMP B3tter Save Account - 3% (when you make a minimum deposit of $2,000 into your linked Bett3r Pay Account each month)UBank USaver - 2.87% (when you deposit at least $200 into the account or a linked Ultra Transaction Account each month)
  • ME Online Savings Account - 2.85% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
  • RAMS Saver Account - 2.8% (when you make a minimum deposit of $200 and no withdrawals in the month)
  • Australian Unity Active Saver - 2.8% (when you make a minimum deposit of $250 and no withdrawals in the month)
  • ING Savings Maximiser - 2.8% (when you make a minimum deposit of at least $1,000 a month from a linked Orange Everyday bank account)

Best term deposit offers

For other great offers to boost your savings, head over to the Mozo term deposit and savings account comparison hubs.    

*Rates accurate as of February 6, 2018.

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 search our database of 473 home loans.
Last updated 21 June 2024 Important disclosures and comparison rate warning*
  • 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
    Go to site

    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.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • 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
    Go to site

    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.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    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.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    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.