RBA March Decision: cash rate remains at 2.50%

There were no surprises from the Reserve Bank today, as the cash rate was kept on hold at 2.50% for the seventh consecutive month at the RBA's monthly board meeting.

Governor Glenn Stevens said "monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.."

Should borrowers sit tight?

Just because the official interest rate is at a standstill it doesn't mean that you can't get a better deal. In fact, because of the low interest rate environment banks are going the extra mile to get new customers. There are now over 20 providers offering tempting sweeteners to lure new customers so it's the perfect time to make the switch and score a better home loan.

Top home loan offers this month include:

• UBank: Apply by 6 March to receive a $2,014 EFTPOS gift card when your loan reaches settlement.
• St. George: $1,250 rebate plus 1% p.a. discount on loans of $500K or more
• Greater building Society: Choose from a choice of three holidays when you switch to its Low Rate home loan
• Teachers Mutual Bank: Apply by 31 March to receive a $750 up-front fee waiver
• Westpac: Up to 1% p.a. discount on standard variable rate
• ANZ: Up to 0.90% p.a. discount on standard variable rate
• NAB: 0.85% p.a. off home loans $500K and above. 0.80% p.a. off home loans $250K-$499,999.
• RAMS: 1% p.a. lifetime discount on variable rate
• Illawarra Credit Union: 1% p.a. lifetime discount off standard variable rate

To find out just how much money you could save by switching home loans, try Mozo's free award-winning Switch & Save Calculator. We compare your home loan against the market and show you how much you could save by switching, try it now here.

Is there any good news for Savers?

Unfortunately Term deposit rates are falling faster than Autumn leaves and according to Mozo's Rate Chasers there were 74 rate reductions last month for terms less than one year. The story isn't any better for at-call savings accounts either with some providers pulling back on their introductory rate offers. The average intro rate now stands at 4.02% p.a.. Survive the rate slump with one of the following deals:

• ME Bank Online Savings Account, currently boasting a leading introductory interest rate of 4.60% p.a.
• Or Mozo's 2013 People's Choice Winner ING Direct Savings Maximiser with a special rate of 4.35% p.a.

Compare more savings account on the Mozo site here.