RBA's July decision: rates on hold at 2.75%

By Mozo Editorial · · 2 min read
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At its monthly meeting today, the Board of the Reserve Bank of Australia decided to leave the official interest rate on hold at 2.75%.

In a statement, RBA Governor Glenn Stevens said: "the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target".

Break down the Bankworld jargon for me, please!

This month's decision is a cautious one, informed by a pretty mixed bag of economic signs.

May's 25 basis point cut has produced optimal and desired results, with the previously high Australian dollar now sitting well below parity with its American counterpart. This downward turn has provided a much boost to the export sector. In line with this, manufacturing figures are also positive, responding well to the healthy trading climate.

Despite these strong indicators of current economic growth, the news isn't looking as good for the next six months. Economists are predicting a slump in employment and job creation figures, and, as ever, the decline of the mining boom continues to loom large on the fiscal horizon.

In light of the above, the Reserve Bank is essentially playing it safe, and waiting to see what the next few months will bring. The next official inflation reading will be released on July 24, and it is likely that that figure will play a big role in shaping the Board's August decision.

So watch this space, folks! It is likely that we will see further cuts before too long.

What does this mean for borrowers?

Although the Reserve Bank might not be cutting rates, there are still a few banks offering top deals on home loans, dropping their rates and competing for your money.

If you're not happy with your current rate, check out our mystery bank page to see what top notch deals we have secured from some of Australia's best banks.

Alternatively, have a look at some of our home loan picks for this month. Fixed rate options include:

  • iMortgage Fusion Fixed: 4.69% for three years (5.08% comparison)
  • UBank UHomeLoan (refinance only): 4.73% for three years (5.01% comparison)

Great variable rate offers include:

  • Loans.com.au Blackboard Special (only LVR 80%): 4.75% (4.77% comparison)
  • UBank UHomeLoan (refinance only): 4.87% (4.87% comparison)

And for savers?

Now is as good a time as any to open a high interest savings account and grow yourself a neat little nest egg.

Check out these options:

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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    Initial monthly repayment
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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

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    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

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  • Unloan Variable

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    $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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    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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    Initial monthly repayment
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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

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    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.

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.