Let's just say the cacophony in the lead up to the RBA rate decision on Tuesday was deafening.
Since the move to a board meeting every six weeks, instead of monthly, the noise from the echo chamber and peanut gallery has been nearly intolerable.
The RBA has more time to truly mull over rate decisions however, timing meetings to better suit big data releases from the ABS.
Inflation was much expected, if strong. So the RBA elected to hold the cash rate at 4.35%. It's as simple as that.
That said, its post-meeting statement was strong, and Governor Michele Bullock all but ruled out rate decreases in 2024 in her subsequent press conference.
While many people may not appreciate it, the firm and steady guiding hand from the RBA is important, especially in light of the market mania earlier in the week.
Imagine if it hiked or cut. Utter pandemonium.
This also coincided with a pretty quiet week on the home loan rate front. Still, some interesting little moves to make note of below.
G&C Mutual moves rate north on Essential Worker product
G&C Mutual Bank added 15 basis points to the advertised rate of its Essential Worker home loan, allowing up to 95% LVR.
It's now 5.95% p.a. (5.98% p.a. comparison rate*)
This product was noteworthy because it was out-and-out one of the most competitive variable rates out there, let alone at 95% LVR.
Only essential workers were eligible for the loan, including those in healthcare and emergency services, teachers and early childhood educators, disability service workers, and corrective service workers.
It's also noteworthy in that it comes with a 100% offset account, and up to $1,000 in third party fees are covered - for example, valuations and legal fees.
Anything south of 6.00% p.a. is very competitive, as seen in the comparison table below.
Regional Australia Bank tinkers around the edges
RAB moved rates on a wide array of products, many by peculiar amounts.
Most notable was its 20 basis point hike on its Basic 3-Year Introductory Loan for owner occupiers, now 6.14% p.a. (6.57% p.a. comparison rate*).
This is a variable rate but with a lower intro rate for three years.
A host of variable rates with an offset account were altered by between 2 and 15 basis points, as well as fixed rates by between 2 and 39 basis points.
Other moves
- loans.com.au moves fixed rates north by up to 20 basis points
- Newcastle Permanent adds up to 20 basis points to 2-year fixed rate products
Photo by Anastasia Petrova on Unsplash
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