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

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on August 1st, as widely expected. Policymakers said the Australian economy is expected to grow at an annual rate of around 3 percent over the next couple of years and inflation is estimated to pick up gradually as the economy strengthens. Interest Rate in Australia averaged 4.69 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 Keeps Cash Rate Steady At 1.5% In August


The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on August 1st, as widely expected. Policymakers said the Australian economy is expected to grow at an annual rate of around 3 percent over the next couple of years and inflation is estimated to pick up gradually as the economy strengthens.

Excerpt from the statement by the governor, Philip Lowe:

The Bank's forecasts for the Australian economy are largely unchanged. Over the next couple of years, the central forecast is for the economy to grow at an annual rate of around 3 percent. The transition to lower levels of mining investment following the mining investment boom is almost complete, with some large LNG projects now close to completion. Business conditions have improved and capacity utilisation has increased. Some pick-up in non-mining business investment is expected. The current high level of residential construction is forecast to be maintained for some time, before gradually easing. One source of uncertainty for the domestic economy is the outlook for consumption. Retail sales have picked up recently, but slow growth in real wages and high levels of household debt are likely to constrain growth in spending.

Employment growth has been stronger over recent months, and has increased in all states. The various forward-looking indicators point to continued growth in employment over the period ahead. The unemployment rate is expected to decline a little over the next couple of years. Against this, however, wage growth remains low and this is likely to continue for a while yet.

The recent inflation data were broadly as the Bank expected. Both CPI inflation and measures of underlying inflation are running at a little under 2 percent. Inflation is expected to pick up gradually as the economy strengthens. Higher prices for electricity and tobacco are expected to boost CPI inflation. A factor working in the other direction is increased competition from new entrants in the retail industry.

The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to 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.

Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In some other markets, prices are declining. 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. Investors in residential property are facing higher interest rates. There has also been some tightening of credit conditions following recent supervisory measures to address the risks associated with high and rising levels of household indebtedness. Growth in housing debt has been outpacing the slow growth in household incomes.

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 | rida@tradingeconomics.com
8/1/2017 6:28:01 AM



Calendar GMT Actual Previous Consensus Forecast (i)
2017-06-06 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2017-07-04 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
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%
2017-09-19 01:30 AM RBA Meeting Minutes
2017-09-21 01:30 AM RBA Bulletin


Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 1.97 1.94 18.18 1.94 percent [+]
Money Supply M0 104.10 104.98 105.76 4.09 AUD Billion [+]
Money Supply M1 351.81 350.65 351.81 8.25 AUD Billion [+]
Money Supply M3 2038.22 2021.23 2038.22 10.19 AUD Billion [+]
Banks Balance Sheet 4187.32 4105.50 4187.32 322.96 AUD Billion [+]
Central Bank Balance Sheet 173411.00 173082.00 200326.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 84078.00 88457.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 893.82 882.87 893.82 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 Notes

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 August 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

Last
Brazil 9.25 Jul/17
Russia 9.00 Jul/17
Turkey 8.00 Jul/17
Mexico 7.00 Aug/17
India 6.00 Aug/17
Indonesia 4.75 Jul/17
China 4.35 Jun/17
Australia 1.50 Aug/17
South Korea 1.25 Jul/17
United States 1.25 Jul/17
Canada 0.75 Jul/17
United Kingdom 0.25 Aug/17
Euro Area 0.00 Aug/17
France 0.00 Aug/17
Germany 0.00 Aug/17
Italy 0.00 Aug/17
Netherlands 0.00 Aug/17
Spain 0.00 Aug/17
Japan -0.10 Jul/17
Switzerland -0.75 Jul/17