RBA's September decision: rates on hold at 3.50%

By Mozo · · 2 min read
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Spring has sprung, bringing with it a welcome change in the weather, a not so welcome change in pollen levels (sniffle sniffle), and, for the third month in a row, no change in Reserve Bank interest rates.

Yes, Governor Glenn Stevens has today yet again announced that the official cash rate will be held at 3.50%, in reaction to an entirely mixed bag of national and international fiscal signs.

In a statement, Stevens declared that the current monetary policy "remained appropriate", due to a "subdued international outlook" and local growth "close to trend".

No change again, RBA? This is really starting to get dull.

Not so! Ostensibly dull it may be, but there’s more to this month's decision than meets the eye.

Locally, August saw better than expected national employment rates, coupled with lacklustre retail figures and markedly fewer numbers of building approvals.

Internationally, the EuroZone has been relatively stable, while further afield, economists have revised growth figures for China, predicting the next quarter will produce negative results for the market superpower.

Such contrary and confusing monetary signs have informed this month's Reserve Bank rate decision. The RBA is playing it cool, still closely monitoring the effects of its cumulative 0.75% cut over the May/June period, and waiting to see what the next few months bring internationally.

And never fear the decision doldrums aren't expected to last for too much longer: economists are expecting another rate cut in November, so stay tuned.

Get specific. What does this all mean for borrowers?

The RBA certainly ain’t shaking things up this month, but that doesn’t mean you can't! Now is as good a time as any to shop around, find a better deal and refinance.

Unfortunately, it's pretty unlikely this month that any of the banks will cut their rates on variable home loans. There continues to be, however, a nice downward trend in fixed rate home loans.

As per usual, the eagle-eyed team of Mozo Rate Chasers will be keeping a close eye on things, ensuring no sneaky rate changes go unnoticed.

And for savers?

Although rates in this area are static, and have been for a few months now, there are still a few banks out there who are competing fiercely for your money. Take the time to scout around and check out some of the great deals on offer.

UBank's 404 1 year term deposit is looking mighty fine at 5.35%, while the RAMS Saver account leads the way on at call rates, sitting pretty on 5.75%.

Read last month's Reserve Bank interest rates update.

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Last updated 5 December 2025 Important disclosures and comparison rate warning*
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Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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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.

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