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:

  • loans.com.au Dream Loan Express 4.55% variable rate  (4.57% comparison rate)
  • IMB introductory variable 4.66 variable (5.40% comparison rate)
  • iMortgage Essential 4.69% variable rate (4.71% comparison rate)

And for savers?

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

Read last month's Reserve Bank interest rates update.

Top home loans - last updated 3 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    5.91% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    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. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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.