Australia Interest Rate  1990-2017 | Data | Chart | Calendar | Forecast

Moves towards higher interest rates in other economies were a welcome development, but did not have mechanical implications for the setting of policy in Australia, Minutes of the Reserve Bank of Australia October meeting showed. The timing of any changes in interest rates would be dependent, as always, on developments in domestic economic conditions, it added. Meantime, the board also noted that monetary conditions in other advanced economies had been eased significantly more than in Australia since the onset of the financial crisis. Interest Rate in Australia averaged 4.67 percent from 1990 until 2017, reaching an all time high of 17.50 percent in January of 1990 and a record low of 1.50 percent in August of 2016.

Australia Interest Rate
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Australia Leaves Monetary Policy Unchanged

The Reserve Bank of Australia held the cash rate steady at a record low of 1.5 percent at its October 2017 meeting, as widely expected. Policymakers said a pick-up in non-mining business investment over recent months would be a welcome development while low level of interest rates continue to support the economy.

Excerpt from the statement by the governor, Philip Lowe:

The Australian economy expanded by 0.8 per cent in the June quarter. This outcome and other recent data are consistent with the Bank's expectation that growth in the Australian economy will gradually pick up over the coming year.

Over recent months there have been more consistent signs that non-mining business investment is picking up. A consolidation of this trend would be a welcome development. Business conditions as reported in surveys are at a high level and capacity utilisation has risen. A large pipeline of infrastructure investment is also supporting the outlook. Against this, slow growth in real wages and high levels of household debt are likely to constrain growth in household spending.

Employment has continued to grow strongly over recent months. Employment has increased in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators point to solid growth in employment over the period ahead, although the unemployment rate is expected to decline only gradually over the next couple of years.

Wage growth remains low. This is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.

The Australian dollar has appreciated since mid year, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to continued subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Growth in housing debt has been outpacing the slow growth in household incomes for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Following some tightening in credit conditions, growth in borrowing by investors has slowed a little recently. In the housing market, conditions continue to vary considerably around the country. Housing prices have been rising briskly in some markets, while in others they have been declining. In Sydney, where prices have increased significantly, there have been further signs that conditions are easing. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

RBA l Rida Husna |
10/3/2017 3:57:05 AM

Calendar GMT Actual Previous Consensus TEForecast
2017-08-01 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2017-09-05 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2017-10-03 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.50% 1.5%
2017-11-07 03:30 AM RBA Interest Rate Decision 1.5% 1.5%
2017-11-10 12:30 AM RBA Statement on Monetary Policy
2017-11-21 12:30 AM RBA Meeting Minutes

Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 2.05 1.90 18.18 1.90 percent [+]
Money Supply M0 105.83 105.10 105.83 4.09 AUD Billion [+]
Money Supply M1 357.66 354.45 357.66 8.25 AUD Billion [+]
Money Supply M3 2043.16 2035.94 2043.16 10.19 AUD Billion [+]
Banks Balance Sheet 4187.32 4105.50 4187.32 322.96 AUD Billion [+]
Central Bank Balance Sheet 158278.00 169010.00 200326.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 74871.00 76342.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 898.29 896.36 898.29 20.21 AUD Billion [+]
Deposit Interest Rate 2.10 2.30 15.69 2.10 percent [+]
Private Debt to GDP 223.38 220.87 223.38 125.69 percent [+]

Australia Interest Rate

In Australia, interest rates decisions are taken by the Reserve Bank of Australia's Board. The official interest rate is the cash rate. The cash rate is the rate charged on overnight loans between financial intermediaries, is determined in the money market as a result of the interaction of demand for and supply of overnight funds. This page provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Australia Interest Rate - actual data, historical chart and calendar of releases - was last updated on October of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 17.50 1.50 1990 - 2017 percent Daily

interest rate by Country

Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Sep/17
India 6.00 Oct/17
China 4.35 Sep/17
Indonesia 4.25 Sep/17
Australia 1.50 Oct/17
South Korea 1.25 Oct/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17