RBA March meeting: Another rate cut for 2015!

Tuesday 03 March 2015

Article by Mozo

The official cash rate has been slashed once again by 25 basis points to 2.00%, at today’s Reserve Bank of Australia board meeting.

This is the second time the RBA board has cut the official cash rate in 2015, following February’s rate cut from 2.50% to 2.25%.

The 2015 RBA rate cuts come after the official cash rate was kept on hold for 17 consecutive months - one of the longest periods of rate stability in Australian history.

So why is the RBA board slashing rates to record lows? One of the main reasons suggested by financial experts is a weak Australian economy, poor non-mining business investment and falling employment.

Governor Glenn Stevens said in a statement xx

Home loan hotspots

Was your home loan lender naughty or nice after February’s rate cut? Mozo’s number crunchers were on the case and found that most home loan providers passed on the full 25 basis point rate cut to customers, with Westpac taking it one step further cutting all its variable rates by 0.28%.

Leading the charge with the best variable rate for home loans over $500,000 and an LVR below 80% was eMoney cutting its Prime Propack home loan by 25 basis points to a market low 4.20%.

In the fixed rate home loan world, Newcastle Permanent’s took out the top spot for its 1, 2 and 3 year fixed rates at 3.89%, 4.04% and 4.09%. As well as 4 and 5 year fixed rate home loans at 4.29%.

Want to see more great rate home loans? Discover your best borrowing match, in Mozo’s home loan comparison tables here.

Savings saviours

While home owners and investors across the country are sure to be cheering at today’s RBA rate cut, times are tough for savers, as savings accounts risk more rate cuts.

After last month’s RBA rate cut, all of the big four banks slashed their savings account rates by 25 basis points, along with 45 other savings account providers. But that doesn’t mean you can’t get a decent return from a savings account, it’s just about finding the right one.

While UBank cuts its USaver with Ultra Transaction Account to 3.77%, making it now the third best conditional ongoing rate, thankfully two of Australia’s best savings account providers, decided to leave their ongoing savings account interest rates as is.

ING DIRECT kept its Savings Maximiser at a market best 4.00%, as long as you link it with your Orange Everyday Account and deposit $1,000 or more a month. And RAMS’ 3.91% ongoing interest rate continued to shine, as long as you don't make any withdrawals and deposit at least $200 each month.

If meeting conditions isn’t your thing, then check out Rural Bank ONE's Saver with a 3.00% interest rate, the best non-conditional savings account rate in the market.

Want to see the other savings account saviours? Then search the savings account market today!

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