RBA April decision: Cash rate remains at 3.0%

By Mozo · · 2 min read
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The Reserve Bank of Australia has kept the cash rate on hold for the fourth consecutive month at 3.0%.

The decision to keep rates where they are comes as no surprise. In his statement Glenn Stevens said that the easing of monetary policy during late 2011 and 2012 is having an expansionary effect on the economy. However the exchange rate remains higher than might have been expected, given the observed decline in export prices. The Board would continue to assess the outlook and adjust policy as needed but felt it was prudent to leave the cash rate unchanged.

Is this the bottom of the rates cycle?  

Glenn and Co at the RBA did today again state that the inflation outlook would afford scope to ease policy further should that be necessary to support demand. Some economists still believe there is room for a further 25 basis point rate cut later in the year but we are already seeing some indicators that suggest that lenders are starting to move their home loan rates higher.

Westpac is one lender that has increased its fixed rate home loans in recent weeks. Fixed rate loans are still at historically low levels and in the Mozo database we currently have 18 providers that have 1 year fixed rates at or below 5%. See here for fixed rate home loans.

On the variable rate side, if you are refinancing and have over 80% LVR UBank offers the best variable rate at 5.12%. Loans.com.au has lifted its rate from 5.08% to 5.22% on the Blackboard Special home loan but even at 5.22%, this is still the best rate for new loans and a LVR over 80%. Check out our variable rate home loans page for more variable rate deals.

What to do with your savings?

Good news is that unlike the savers of Cyprus, we have a government guarantee on deposits of up to $250,000. If you have some cash that you want to put away right now you'll get the best return on your money from RAMs with its Saver account at 5.01% but there are minimum monthly deposit requirements of $200 or more. ING also have a 5.00% rate for its Savings Maximiser account for the first 4 months.

If you want to lock away your money for a set term, the best 1 year term deposit rate is 4.55% with ME bank and the best 5 year rate is 5.00% with RaboDirect.

See here for savings account or compare term deposits.

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 24 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
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    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
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    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
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    Interest rate
    5.74 % p.a.
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    Initial monthly repayment
    $2,915

    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.

  • Unloan Variable

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

  • Budget Home Loan

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    6.04 % p.a.
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    6.07 % p.a.
    Initial monthly repayment
    $3,011
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    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

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    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.

  • Elevate

    • Owner Occupier
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    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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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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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.