Reserve Bank keeps interest rates on hold at 2.0 percent

The Reserve Bank of Australia has kept interest rates on hold at 2.0 percent.

Economists had been split on whether the RBA would alter rates, with November considered a particularly popular month for rate movement.

Over the past two decades the cash rate has shifted nine separate times on Melbourne Cup day.

The RBA lowered interest rates in both February and May this year, justifying the decision by pointing out lowered forecasts for economic growth.

The cash rate has held at two per cent since May.

Last week Prime Minister Malcolm Turnbull claimed the big banks had "overdone it" with their round of independent mortgage rate increases.

For example, the 0.2 percentage point increase by Westpac was double what was needed to cover the cost of new capital requirements, he said.

Other banks raised their rates by 0.15 to 0.18 percentage points.

"The increase they are making is higher than is justified by the additional capital they are being required to hold," Mr Turnbull told Adelaide's 5AA radio.