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

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:

Great variable rate offers include:

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:

Top home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

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    UHomeLoan

    Owner Occupier, Principal & Interest

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    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

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    Initial monthly repayment
    2.09% p.a.
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    2.43% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

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    Fixed Home Loan

    Owner Occupier, Principal & Interest

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    1.89% p.a.
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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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loans Awards

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