The Reserve Bank of Australia (RBA) has left interest rates on hold, as the door remains ajar for a pre-Christmas rate cut next month.
The RBA left the official cash rate at 4.35 per cent.
It will meet again in December in the final meeting of the year before Christmas, in what retailers hope could be an early gift and result in strong consumer spending to finish the year.
In a statement, the Reserve Bank Board said it remains resolute in its determination to return inflation to target.
“The Board will continue to rely upon the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market,” it said.
RateCity.com.au money editor, Laine Gordon, said while the cash rate has been stuck in neutral for almost a year, variable home loan rates have started to drop.
“In the past year, around 70 banks have lowered at least one variable home loan rate, but not all customers will have had a rate cut,” she said.
“It’s a timely reminder to check your home loan rate and compare it to what your bank is currently offering new customers. If you are being taken for a ride, then now is the time to do something about it.
“By all means haggle, but consider making the switch. The sharpest rates are typically reserved for new customers, no matter how good your negotiating skills are, so it’s worth considering refinancing.
“If you are thinking of switching lenders, firstly do a quick check of how much equity you have in your loan because this is often crucial in understanding your options. If you’re an owner-occupier and own at least 20 per cent of your home already, then you’re in the box seat when it comes to rates. Use it to your advantage.”
Troy Dodds
Troy Dodds is the Weekender's Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia's leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.