The Reserve Bank has left interest rates on hold at 1.50% again this month, a move anticipated by the vast majority of analysts.

The official cash rate has been at a record low since August last year, and looks set to stay there for some time. The combination of stagnant wage growth and high household debt in Australia is still a concern for policymakers, and the cash rate is likely to remain steady until the imbalance is well on its way to being resolved.

In his statement, Lowe said that low wage growth “is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.”

Though the next move from the RBA is forecast to be an increase, experts aren’t expecting it to happen any time soon. Mozo Data Manager Peter Marshall said it could be another 8-12 months before the Reserve Bank makes any change.

Time to spring clean your home loan

Though the cash rate has been at a record low since last August, that doesn’t mean home loan rates are too. Competition is heating up in the interest rates war, as lenders hike some rates and cut others.

In particular, battle lines have been drawn between interest-only and principal and interest borrowing, with the latter benefiting from rate cuts, while the former has been hammered with rate rises.

With all the shifts in the market, now is a great time to reevaluate your mortgage, and make sure you’re still getting the best rate around.

• FreedomLend Variable Home Loan - 3.54% (comparison rate: 3.55%)
  
• Homestar Variable Rate Loan - 3.54% (comparison rate: 3.59%)
• Loans.com.au Essentials Variable 80 - 3.64% (comparison rate: 3.66%)

Check out other top variable rate home loans in our comparison table.

• 1 year - 3.49% - Greater Bank (comparison rate: 4.47%)
• 2 year - 3.64% - Newcastle Permanent (comparison rate: 4.79%)
• 3 year - 3.69% - Auswide (comparison rate: 4.87%), Newcastle Permanent (comparison rate: 4.69%)
• 4 year - 3.99% - Greater Bank (comparison rate: 4.48%)
• 5 year - 3.99% - Greater Bank (comparison rate: 4.47%)

Find other top fixed rate home loan offers in our comparison table.

Savers still feeling the squeeze

More bad news for savers, as rates on both term deposits and savings accounts continue to drop. Term deposits in particular are under fire, with this month seeing the most rate cuts and the least increases all year. The top rates for many terms are now lower than they might have been a month ago.

But it’s not all bad, and for those who know where to look, there are still some products offering a decent return on your savings.

• RAMS Saver Account - 3.00% (with a minimum deposit of $200 and no withdrawals in the month)
• AMP Bett3r Save Account - 3.00% (with a minimum deposit of $2,000 per month into linked Bett3r Pay Account)
• ME Online Savings Account - 2.95% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
• Australian Unity Active Saver - 2.90% (with a minimum deposit of $250 and no withdrawals in the month)
• UBank USaver - 2.87% (with a minimum deposit of at least $200 per month to linked transaction account)

Check out our savings account comparison table to find other great options.

• 1 year - 2.80% - Police Bank
• 2 year - 3.10% - Qudos Bank
• 3 year - 3.20% - Qudos Bank
• 4 year - 3.05% - People’s Choice Credit Union
• 5 year - 3.25% - RaboDirect

Check out other great term deposit options with our term deposit search tool.