RBA sits tight - cash rate stays at 4.75%
- Cash rate @ 4.75% for seventh month straight
- Weak housing, job and retail figures cited
- Global uncertainty also contributed to decision
Despite predictions from economists that a rate rise before August was imminent, the Reserve Bank of Australia today announced that the official cash rate would remain at 4.75%.
Weak housing, jobs, retail figures released this week and slower recovery in coal production capacity contributed to the RBA's decision to keep rates on hold as did the continued uncertainty in global financial markets and sovereign debt problems in Europe.
Many economists are now predicting that the next likely rate rise will not be until the December quarter.
Time to shop around?
Home owners who are already feeling the mortgage pitch should take the opportunity of this reprieve to shop around and compare home loans and find a better home loan rate.
Try Mozo's home loan health check. It will compare your current loan with the market and give you the top five loans which will save you the most by switching.
Using the Commonwealth Bank's no fee variable loan as an example. On a $300,000 over 25 years with monthly repayments of $2500, Mozo's Health Check tool shows that by switching to the loans.com.au Dream Express Home Loan you would save $27,390.00 over the life of the loan.
Will the banks play naughty or nice?
All eyes will now be on the big banks to see if they move out of line with the RBA's decision. Earlier this week, the government's exit fee ban came into effect which was initially designed to create more competition in the home loan market. But already we've seen market leaders loans.com.au and UBank increase interest rates on their respective dream loan express and UHomeLoan variable rate loans - what will the big banks do?
Stay tuned here for updates from the Mozo Rate Chasers.
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