RBA's September decision: rates on hold at 2.50%

At its monthly meeting today, the Board of the Reserve Bank of Australia decided to leave the official interest rate untouched at 2.50%.

In a statement, RBA Governor Glenn Stevens said: "the Board judged that the setting of monetary policy remained appropriate. The Board will continue to assess the outlook and adjust policy as needed".

Why keep rates on hold?

The reason boils down to two words: Federal Election. In four days time, Aussies may wake up to find a change of government, and be confronted with a raft of new policies affecting all facets of life such as the the carbon tax, fringe benefits tax, paid parental leave scheme, and many more.

The Reserve Bank knows that any rate changes made before Saturday 7th will have limited impact on the economy, as businesses and households will be solely focused on the election and will unlikely commit to any new spending decisions until all the votes have been counted.

Those hoping for a rate cut however need not be disappointed by today's RBA decision. The Board has made it clear that they are open to further rate changes, with pundits predicting one or two more rate cuts by the end of the year. So watch this space, folks! We might even see a rate cut on Melbourne Cup Day!

What's news for borrowers?

Although there are no rate cuts to speak of, home loan rates are still at record lows so you can save thousands right now by switching to a cheaper loan. Here are our top picks:

And for savers?

There are still some banks who are offering great rates. Top at call rates right now include:

Top home loans - last updated February 27, 2021

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

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

    interest rate
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    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

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    2.09% p.a.
    fixed 2 years
    2.56% 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 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

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    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

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  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

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  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
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    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply

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