- Home
- Home Loans
- News
- Cash rate set to remain at historic low
Cash rate set to remain at historic low
Tomorrow’s Reserve Bank announcement is likely to see the cash rate put on hold as the board waits to see the effects of the August cut fully take shape.
This year has already seen the cash rate cut twice and it now sits at the historic low figure of 1.5 per cent. While this may seem like good news for borrowers, access to such low interest rates on mortgages has contributed to Australian households having more debt, compared to the size of the country’s economy, than any other in the world.
The higher our debt levels, and the closer we get to a zero cash rate, the less effective each cut becomes which will also be a key influence in steadying the board’s hand at tomorrow’s meeting.
This ineffectiveness is largely because cash rate cuts are intended to boost spending and stimulate the economy, however, the banks withheld almost half of the last cut, reducing the total impact.
Consumer confidence is also down at the moment, despite recent cuts, as consumers have a negative outlook of the current economic situation. These economic indicators point towards the cash rate remaining on hold for the rest of the year.
The board will make their announcement at 2.00pm tomorrow.
Disclaimer
This article is over two years old, last updated on September 5, 2016. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
Compare home loans in Australia
6.09%
6.11%
$3,249
Australian Credit Licence 230686
Fees & charges apply
- Special
- Owner Occupied
- Variable
- 40% min deposit
- P&I
5.99%
5.90%
$3,218
Australian Credit Licence 234945
Fees & charges apply
- 2024 Award Winner
- Special
- Owner Occupied
- Variable
- 20% min deposit
- P&I
5.94%
5.95%
$3,203
Australian Credit Licence 496431
Fees & charges apply
- Special
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.04%
6.06%
$3,234
Australian Credit Licence 395219
Fees & charges apply
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.29%
6.20%
$3,311
Australian Credit Licence 234945
Fees & charges apply
- Special
- Investor
- Variable
- 20% min deposit
- P&I
5.99%
6.51%
$3,448
Australian Credit Licence 395219
Fees & charges apply
- Owner Occupied
- Variable
- 10% min deposit
- P&I
5.69%
6.16%
$3,127
Australian Credit Licence 395219
Fees & charges apply
- Owner Occupied
- Fixed 3 years
- 10% min deposit
- P&I
6.29%
6.29%
$3,311
Australian Credit Licence 496431
Fees & charges apply
- Investor
- Variable
- 10% min deposit
- P&I
6.84%
7.16%
$3,611
Australian Credit Licence 233714
Fees & charges apply
- Owner Occupied
- Variable
- 5% min deposit
- P&I
6.95%
7.15%
$2,896
Australian Credit Licence 234945
Fees & charges apply
- Investor
- Variable
- 20% min deposit
- Interest Only
7.24%
7.24%
$3,611
Australian Credit Licence 234527
Fees & charges apply
- Cashback
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.99%
7.10%
$3,531
Australian Credit Licence 388053
Fees & charges apply
- 2024 Award Winner
- Investor
- Variable
- 40% min deposit
- P&I
Product database updated 17 Sep, 2024
Fact Checked
Share this page
Get updates on the latest financial news and products
By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.
Promoted home loans
Neat Home Loan
Real Time Rating™
- Special
- Owner Occupied
- Variable
- 40% min deposit
Interest rate p.a.
6.09%
Comparison rate* p.a.
6.11%
Australian Credit Licence 230686
Fees & charges apply
Variable Rate Home Loan LVR < 80%
Real Time Rating™
- 2024 Award Winner
- Special
- Owner Occupied
- Variable
Interest rate p.a.
5.99%
Comparison rate* p.a.
5.90%
Australian Credit Licence 234945
Fees & charges apply
Live-in Variable Home Loan
Real Time Rating™
- Special
- Owner Occupied
- Variable
- 10% min deposit
Interest rate p.a.
5.94%
Comparison rate* p.a.
5.95%
Australian Credit Licence 496431
Fees & charges apply
Variable Home Loan
Real Time Rating™
- Owner Occupied
- Variable
- 10% min deposit
- P&I
Interest rate p.a.
6.04%
Comparison rate* p.a.
6.06%
Australian Credit Licence 395219
Fees & charges apply
Product data updated on 17 Sep 2024