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