RBA's July decision: rates on hold at 3.5%

By Mozo · · 2 min read
Fact Checked
Advertiser disclosure

The RBA has announced that it will be holding the official cash rate at 3.50%, in reaction to positive domestic and stable international economic signs.

They cut rates last month, why not this month?

Good question. Last month’s welcome cut was primarily in response to increasing fiscal instability in Europe and China, according to RBA Governor Glenn Stevens.

The 0.25 basis point cut was an attempt to help quell domestic fears regarding the EuroZone and the continued slow in both China and America’s economic growth.

In the month since the cut, a growth in GDP has coincided with a drop in unemployment figures, both positive signs for the country’s economy that can be linked to the RBA’s June decision. Furthermore, the European economic backdrop hasn’t shifted dramatically.

A July cut, therefore, was unfortunately very unlikely. Glenn and his pals are holding the reins steady in light of the positive results their last cut has ostensibly produced. They’re also keeping a watchful eye on the global economy. In Stevens’ own words: “with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate”.

Here at Mozo, we’re betting the RBA will be monitoring the longer-term effects of its June decision over the next few months, and continuing to hold rates steady.

AMP Chief Economist Shane Oliver predicts that only “far more uncertainty regarding the global backdrop” will prompt another cut any time soon.

What will the banks do?

This decision is highly unlikely to incentivise a rate cut from any bank. But hey, we can always hope.

Rest assured, the eagle-eyed team of Mozo Rate Chasers will be keeping an eye on all the banks just in case there are any sneaky rate increases attempting to slither under the radar.

What effect will this have on borrowers? Well, now’s the time to switch and save!

Here’s a heads up: just because Glenn and Co are sitting back and relaxing this month doesn’t mean you should.

Now is a super time to refinance or scout around for a better deal. Banks are in fierce competition with one another and there are some great savings to be made.

Check out our Health Check " data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="0" class="ldtx-link-good ldtx-link-good-internal-follow">Health Check tool; you could be just a couple of clicks away from saving some serious cash. Average potential savings by Mozo visitors this year using our Health Check Tool is over $39,000. 

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 15 January 2025 Important disclosures and comparison rate warning*
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Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

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  • Offset Variable Home Loan

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    • LVR <60%
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    Initial monthly repayment
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    Competitive interest rate. 100% offset account so your savings can reduce the amount of interest you pay on your home loan. No ongoing monthly fees. Buy your home with as little as a 5% deposit. You can redraw your repayments if you’re ahead. Choose to repay weekly, fortnightly, or monthly. Make extra payments without penalty, to pay off your home loan even faster.

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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.

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.