RBA's August decision: rates on hold at 3.50%, again.

For the second month in a row, the Reserve Bank of Australia has announced that it will hold the official cash rate at 3.50%, in reaction to low domestic inflation figures and the continued relative stability of the economy.

In a statement, Governor Glenn Stevens asserted, "the stance of monetary policy remained appropriate, as the past month has seen inflation meeting targets and the international economic climate has been relatively subdued."

No change again? Why so boring, RBA?

Hey now, don’t be like that. Although this month's decision doesn't make for very interesting news, it's a positive sign for the country overall.

The RBA's most recent decisions have resulted in some pretty good stuff:

  • The cumulative 0.75% cuts in May and June produced a growth in GDP and contributed to a substantial drop in unemployment figures.
  • Holding rates in July helped keep inflation down; it's currently running at 1.5%, the lowest it has been in three years.

So it's really no surprise that the RBA is being wholly unadventurous and leaving rates well alone this month. They’re sitting back and monitoring the effects of their previous decisions--it ain't broke, so they ain't fixing.

Any predictions for the next few months, oh wise one?

Glad you asked. Here at Mozo, we’re predicting that nothing short of an international monetary meltdown will prompt another rate cut in the next couple of months. But the odds for another rate cut before Christmas is still highly likely, particularly if more EuroZone-related issues surface in the coming months.

So what does all this mean for borrowers?

While the RBA isn't instituting a whole lotta change this month, that doesn't mean you can't!

It's unlikely that banks will make cuts to any of their variable rate home loans but we've seen some great downward movements in fixed rate home loans. You can snap up a fixed rate as low as 5.44% for one, two or even three years with market-leading My Mortgage Freedom.

As always, the team of Mozo Rate Chasers will be keeping an eye on things, ensuring any sneaky rate changes don’t go unnoticed.

If you're wondering how much you could save by switching home loans, give your home loan a free home loan health check. In seconds, we’ll tell you how much you can save by switching loans.

And savers?

Although savings interest rates are on the whole quite steady, there are still a few banks out there competing fiercely for your money. So, if you've got any cash stuffed under the mattress, now is the perfect time to invest it in a high-interest account.

Some top offers include:
RAMS Saver: 5.75% (monthly deposit and withdrawal conditions apply)
UBank USaver: 5.71% (monthly deposit conditions)
Citibank Online Saver: 5.70% (4 month bonus rate)

Term deposits are also looking pretty tantalising right now with over 18 banks offering rates of over 5% on a $10,000 deposit (5 year). RaboDirect tops them all, with a juicy 5.80%. Other popular choices include Gateway CU at 5.21% and BankWest with 5.15%.

Read last month's Reserve Bank interest rates update.

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

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.13% p.a.

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

    Go to site
    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
    placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

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

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account.

    Go to site
    Details
  • placeholder
    Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Go to site
    Details

* 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.

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.