June RBA decision: Board leaves official cash rate at 2.50% (again!)

By Rebeccah Elley · · 2 min read
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The Reserve Bank of Australia Board has left the official cash rate at a historic low 2.50% for the 10th consecutive month, at the RBA's June board meeting.

Governor Glenn Stevens said in a statement that financial conditions overall remain very accommodative. "Long-term interest rates have fallen further and risk spreads remain low...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."

Some economists are tipping rate rises later this year or early 2015 due to financial improvements in non-mining sectors and the threat of growing inflation.

However, we will have to wait and see if the aftermath of the “tough” Federal Budget announcement affects consumer confidence and retail-spending figures, pushing a future rate cut.

Time will only tell which way the RBA swings in the future but for now...

Heat your home loan

With record low interest rates in the home loan market, now is the perfect time to warm your home loan this winter.

loans.com.au continues to offer the lowest variable interest rate at 4.54%. In the fixed rate battle IMB rules supreme for its 1 year fixed rate at 3.99% and for those looking for a longer term fixed rate HSBC sits at the top for its newly launched 2 year special fixed rate at 4.58%.

Stash your cash

While record low interest rates isn’t great news for savers, there are still a few financial institutions - that have come to the savings party - offering impressive savings accounts with interest rates above the 4% mark.

ME Bank’s Online Savings Account has a market leading 4.60% intro rate for the first 5 months, as long as it’s linked to a ME everyday transaction account. UBank’s USaver with Ultra is also worth a look with a sharp 4.37% intro rate, provided you have a minimum opening balance of $10,000 and deposit $2,000 monthly.

For more great deals search Mozo’s bustling savings account market here.

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 17 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • 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.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.99 % p.a.
    Fixed 2 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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Need help with refinancing?

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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.