Reserve Bank of Australia keeps cash rate on hold

THE Reserve Bank of Australia has kept the official cash rate on hold at two per cent — and it’s likely to stay put until the end of the year.

All eyes on this man ... Reserve Bank of Australia Govenor Glenn Stevens. Picture: Jack Tran / The Courier Mail

THE Reserve Bank of Australia has kept the official cash rate on hold at two per cent.

The central bank made its last cut in May when it slashed 25 basis points off the cash rate and left borrowers with the lowest home loans deal on record.

But they failed to budge today and there doesn’t look to be any signs rates will be moving upwards anytime soon.

CommSec chief executive Craig James has tipped the cash rate will stay on hold for the rest of the year.

The central bank made its last cut in May when it shaved 25 basis points off the cash rate leaving borrowers to revel in the historically low home loan deals.

Figures by financial comparison website Canstar show on the average $300,000 30-year home loan the average standard variable rate is 4.54 per cent and the monthly repayment is $1527.

On the same loan with the average three-year fixed rate is 4.91 and the monthly repayment is $1,594.

Canstar spokeswoman Justine Davies said borrowers shouldn’t be complacent.

Canstar spokeswoman Justine Davies said borrowers need to go on the hunt for a competitive home loan deal with many lenders offering rates with a “3” in front.”

“There’s still a two per cent difference between the highest and lowest variable home loan rate on Canstar’s database,’’ she said.

“In our low interest rate environment that’s a massive difference.”

According to their site there are ten variable home loan deals available that are under four per cent.

There are also one, two and three year fixed rate offerings all under four per cent.

Originally published as Reserve Bank of Australia keeps cash rate on hold