April RBA decision: rates on hold

By Mozo · · 2 min read
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At its meeting today, the Reserve Bank of Australia decided to leave the official cash rate on hold at 4.25%

No relief for borrowers

The RBA's decision today to keep the cash rate steady at 4.25% comes as bad news for the nation's homeowners who were hoping to get some relief from the out of cycle rate hikes passed on by Australia's major lenders in recent months.

The RBA board's view was the setting of monetary policy was appropriate with "growth expected to be close to trend, inflation close to target and lending rates close to average."

The Feb / March rate increases were the largest out-of-cycle rate changes in the Australian home loan market since the Global Financial crisis started, with lenders increasing their standard variable rates by an average of 10 basis points - even more than the original ANZ rate change of 6 basis points.

One quarter of lenders bucked the trend and kept their rates on hold to capitalise on customer dissatisfaction with the Big 4 banks. Of the lenders to leave rates on hold, two thirds were mutuals such as Teachers Mutual Bank and Community First, and one third were online lenders and challenger banks such as MyRate and ME Bank.

It is unlikely that homeowners will be hit with another big round of rate hikes in April, but all eyes are squarely on ANZ to see if they make any changes to their monthly rates decision on Friday the 13th!

New round of competition for deposits

The stable cash rate appears to be good news for the nation's savers. March kicked off a new round of competition for deposits, with the volume of savings account rate increases outpacing decreases for the first time in 2012.

Commonwealth Bank, Westpac and St George were among the providers to increase savings rates in an effort to compete more effectively against the direct providers and challenger banks who are aggressively acquiring market share right now.

Term deposit rates for longer terms are also on the rise, with 15 providers lifting their one year term deposit rates in March by an average 29 basis points.

Read last month's Reserve Bank interest rates update.

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Last updated 5 December 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
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    • Redraw available
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    5.04 % p.a.
    Initial monthly repayment
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    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
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  • Fixed Rate Home Loan

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    • Owner occupier
    • Principal & Interest
    • 5% min deposit
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    5.09 % p.a.
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    Initial monthly repayment
    $2,712
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  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
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    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
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    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
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  • Discount Great Rate Home Loan

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    • 20% min deposit
    • Redraw available
    • Cashback
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    5.19 % p.a.
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    Initial monthly repayment
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    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
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  • Variable Home Loan 90

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    • Principal & Interest
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    • Offset available
    • Redraw available
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    Initial monthly repayment
    $2,773
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  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
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    Initial monthly repayment
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    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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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. 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.

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