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The RBA Announcements You Need to Know About

Rates and fees last updated on

The latest news and announcements from the RBA RBA Announcements

On the first Tuesday of every month except January, the board of the Reserve Bank of Australia (RBA) meets to discuss monetary policy and determine the official cash rate. After taking into account factors such as the strength of the economy, the strength of the Australian Dollar, the performance of the housing market and levels of consumer confidence, the board decides whether to raise interest rates, lower them or keep them at the same level.

A full rundown of the minutes of each board meeting can be found on the RBA website. These minutes detail the board’s discussion about global financial markets, international economic conditions, domestic economic conditions and the considerations for monetary policy. At the end of each meeting, a decision is reached on what to do with the official cash rate.

This decision is then announced to the rest of the country on that same Tuesday afternoon. Most famously, the rate announcement in November  coincides with  the Melbourne Cup.

What happens when the cash rate changes?

A change in the cash rate affects a range of financial products and services in different ways.

Home Loans

A rise in the official cash rate is typically unwelcome news for borrowers, with most banks quick to raise the interest rates they offer on their home loan packages. This  results in a larger amount of interest you will have to pay on the amount you borrowed. However, borrowers with fixed rate loans will be able to avoid the extra financial pressure of a rise in the cash rate until their fixed rate period ends.

If the cash rate is lowered by the RBA, however, holders of variable rate loans will be able to take advantage of a reduction in the amount of interest they have to pay towards their loan. On the flipside, those with fixed rate loans will not be able to take advantage of reduced interest charges.

Lower interest rates usually also result in more people entering the property market because buying a house is seen to be more affordable. This increased competition in the property market can drive housing prices up.

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A basic home loan with a competitive rate and low fees.
3.64% 3.66% $0 $0 p.a. 80% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.48% $0 $375 p.a. 85% Go to site More info
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)
Combine a low variable interest rate and free redraw with no application or ongoing fees.
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3.69% 3.72% $0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.69% 4.86% $0 $395 p.a. 90% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
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ING DIRECT Orange Advantage Loan - $150,000+ (LVR <=80% Owner Occupier, P&I)
A fully featured home loan with an offset account and discounts available. $1000 cashback offer available for loans over $300k. Terms and conditions apply.
3.79% 4.11% $0 $299 p.a. 80% Go to site More info
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.85% 3.86% $0 $0 p.a. 90% Go to site More info
State Custodians Low Rate LOC - LVR 80% to 90% (Owner Occupier)
Borrow up to 90% of property's value and pay no application fee.
3.79% 3.82% $0 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate, P&I)
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.84% 4.86% $0 $0 p.a. 95% Go to site More info
SCU Basic Variable Rate Home Loan
A basic home loan with a low interest rate and a redraw facility available. Take out a new SCU loan and enjoy $500 cash back on loans above $150k, terms and conditions apply.
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NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
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Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
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ClickLoans The Online Home Loan - Owner Occupier ≤ 80% LVR, P&I
Enjoy a competitive variable interest rate, no application fee, limited annual fees and an offset account with redraws.
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IMB Budget Home Loan - LVR <=90% (Owner Occupier)
Get a competitive rate without features you may not use.
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Finsure Home Loan Deal
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P&N Bank & Home Loan & Bag
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.99% 4.02% $395 $0 p.a. 80% Go to site More info
ME Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier, P&I)
No application or ongoing fees and a competitive 2 year fixed rate.
3.74% 4.81% $0 $0 p.a. 95% Go to site More info
Select Encompass Credit Union Special Offer 2 Year Fixed Rate Home Loan
A fixed rate loan with limited fees and a competitive interest rate.
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SCU My Life Fixed Rate Home Loan Package - 3 Years
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3.69% 4.00% $0 $350 p.a. 95% Go to site More info
Beyond Bank Low Rate Special Home Loan - LVR <70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.83% 3.83% $0 $0 p.a. 70% Go to site More info
Auswide Bank Variable Home Loan Plus with Freedom Package - $150K+ LVR <= 90% (Special Offer, Owner Occupier)
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3.69% 4.08% $0 $395 p.a. 90% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)
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Mortgage House Advantage Variable Home Loan - 70 (PAYG Special No Offset)
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Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
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QT Mutual Bank Mortgage Saver Home Loan
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Greater Bank Great Rate Home Loan - Discounted Variable ($150K+ Owner Occupier)
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NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
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4.17% 4.21% $600 $0 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
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4.19% 4.19% $0 $0 p.a. 90% Go to site More info
ME Basic Home Loan - LVR <=80% (Owner Occupier, P&I)
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NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
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ME Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier, P&I)
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Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate, P&I)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
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4.59% 4.93% $0 $0 p.a. 95% Enquire now More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier P&I)
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Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Years Fixed (Standard Rate, P&I)
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4.19% 4.86% $0 $0 p.a. 95% Go to site More info
Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier, P&I)
Borrow up to and fix in a 3 year home loan rate. Access your account via internet and phone banking.
4.39% 5.42% $300 $10 monthly ($120 p.a.) 95% Enquire now More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate, P&I)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.89% 4.78% $0 $0 p.a. 95% Go to site More info
ANZ Simplicity PLUS Home Loan - Special Offer (Owner Occupier, P&I)
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
4.03% 4.07% $0 $0 p.a. 95% Enquire now More info
3.78% 3.79% $600 $0 p.a. 90% Enquire now More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
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Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 4.99% $0 $395 p.a. 95% Enquire now More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99% 4.98% $0 $395 p.a. 95% Enquire now More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
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Virgin Reward Me Variable Home Loan - LVR <= 80% ($750k+ Owner Occupier, P&I)
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3.79% 3.92% $0 $10 monthly ($120 p.a.) 80% Enquire now More info
Savings Accounts

If you’ve got a high-interest savings account, a rise in the cash rate will come as good  news. If your bank passes the rate rise on to your account, you’ll be able to enjoy earning an increased amount of interest on your savings balance.

Conversely, a drop in the cash rate will mean that your hard-earned savings earn less interest in your account. While rate rises encourage people to save their money rather than spend it, rate drops do the opposite.

If you have savings stored in a term deposit account, changes to the interest rate won’t affect your savings. Once your deposit matures, you’ll then be able to shop around for a savings account that offers the best rate and features.

Credit Cards

If the interest rate rises and you have debt on your credit card, expect to fork out more in interest charges as you work to pay off the outstanding balance on your card. Cash rate rises are designed to reduce inflation, which could mean that the value of your debt remains the same, but multiple rises would need to be announced for this to happen.

When the cash rate drops, it’s often great news for credit card holders. If your financial institution passes on the rate cut to the  purchase rate on your card, you’ll have to pay less interest on the balance of your card. This can make it more affordable for you to make a range of purchases and you may find it easier to pay off your debt.

However, when your bank doesn’t pass on the interest rate cut, you may wish to shop around for a card that offers a more attractive purchase rate.

History of cash rate changes

Date

Decision

Official Cash Rate

May 2015Rate cut by 0.25%2.00%
April 2015No change2.25%
March 2015No change2.25%
February 2015Rate cut by 0.25%2.25%
December 2014No change2.50%
November 2014No change2.50%
October 2014No change2.50%
September 2014No change2.50%
August 2014No change2.50%
July 2014No change2.50%
June 2014No change2.50%
May 2014No change2.50%
April 2014No change2.50%
March 2014No change2.50%
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This page was last modified on 24 August 2015 at 4:44pm.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)

A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

Get a competitive rate without features you may not use.

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.

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