The Reserve Bank of Australia kept the cash rate unchanged at a record low of 0.1% for the 13th month in a row during its last meeting of 2021 as expected, saying inflation had picked up but it remains low in underlying terms. Policymakers noted that inflation pressures are less than they are in many other countries, amid modest wages growth. The board reiterated that it will not increase the cash rate until Australia's actual inflation is sustainably within the 2% to 3% target range. "This will require the labor market to be tight enough to generate wages growth that is materially higher than it is currently. This is likely to take some time and the board is prepared to be patient." The committee said that it will continue to buy government bonds at a pace of A$4 billion a week until February, when it will review the operation. By mid-February, the RBA will hold a total of $350 billion of the bonds. On the Omicron strain, the bank said it is unlikely to derail the economic recovery. source: Reserve Bank of Australia

Interest Rate in Australia averaged 3.95 percent from 1990 until 2021, reaching an all time high of 17.50 percent in January of 1990 and a record low of 0.10 percent in November of 2020. This page provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Australia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2022.

Interest Rate in Australia is expected to be 0.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Interest Rate is projected to trend around 0.10 percent in 2022 and 0.75 percent in 2023, according to our econometric models.

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Australia Interest Rate


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.
Actual Previous Highest Lowest Dates Unit Frequency
0.10 0.10 17.50 0.10 1990 - 2021 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2021-10-05 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-11-02 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-12-07 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2022-02-01 03:30 AM RBA Interest Rate Decision 0.1% 0.1%
2022-02-02 12:30 AM RBA Chart Pack
2022-02-02 01:30 AM RBA Gov Lowe Speech


Related Last Previous Unit Reference
Interest Rate 0.10 0.10 percent Dec/21
Money Supply M1 1588.13 1561.49 AUD Billion Nov/21
Money Supply M0 511.25 503.26 AUD Billion Nov/21
Interbank Rate 1.22 1.10 percent Sep/19
Money Supply M3 2619.08 2597.57 AUD Billion Nov/21
Central Bank Balance Sheet 636060.00 633814.00 AUD Million Jan/22
Foreign Exchange Reserves 80816.00 80837.00 AUD Million Dec/21
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar/21
Loans to Private Sector 1058.30 1042.22 AUD Billion Nov/21
Deposit Interest Rate 0.05 0.05 percent Dec/21


News Stream
RBA Sees Strong Recovery in 2022 Despite Omicron Threat
The Australian economy was rapidly recovering after the interruption to growth caused by the outbreak of the Delta variant of COVID-19, the Reserve Bank of Australia's (RBA) December meeting minutes showed. "High rates of vaccination and substantial policy support continued to underpin the recovery," it noted, adding that the emergence of the Omicron variant was a new source of uncertainty but it was not expected to derail the recovery. The board reiterated that it remained committed to holding interest rates steady at a record low of 0.1% while considering how and when to taper its A$4 billion bond-buying. The decision would depend on how the economy fared, with data on jobs, inflation, and spending particularly important. "The first option was to reduce the pace of purchases from mid-February with an expectation of a likely end point in May. The second option was to reduce the pace of purchases and review it again in May. The third option was to cease purchases altogether."
2021-12-21
QE Tapering Depends on Data: RBA Governor
The Reserve Bank of Australia has laid out the options for its stimulus programs next year, with the outcome depending largely on the Omicron outbreak, the central bank governor Philip Lowe said in a speech. "The first option was to further taper the bond purchases from the current rate of $4 billion a week, with an expectation that the purchases would come to an end in May," he explained. "The second was to taper further and then review the situation again in May. "The third option was to cease bond purchases altogether in February." At the same time, the governor reiterated that the central bank would not increase the cash rate until actual inflation was sustainably in the 2 to 3% target range. "We are still a fair way from that point. In our central scenario, the condition for an increase in the cash rate will not be met next year." "It is likely to take time for that condition to be met and the board is prepared to be patient."
2021-12-16
Australia Holds Rates, Says No Rush to Taper
The Reserve Bank of Australia kept the cash rate unchanged at a record low of 0.1% for the 13th month in a row during its last meeting of 2021 as expected, saying inflation had picked up but it remains low in underlying terms. Policymakers noted that inflation pressures are less than they are in many other countries, amid modest wages growth. The board reiterated that it will not increase the cash rate until Australia's actual inflation is sustainably within the 2% to 3% target range. "This will require the labor market to be tight enough to generate wages growth that is materially higher than it is currently. This is likely to take some time and the board is prepared to be patient." The committee said that it will continue to buy government bonds at a pace of A$4 billion a week until February, when it will review the operation. By mid-February, the RBA will hold a total of $350 billion of the bonds. On the Omicron strain, the bank said it is unlikely to derail the economic recovery.
2021-12-07