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 at its November 2017 meeting, as widely expected. Policymakers said the Australian economy is expected to advance at an annual rate of around 3 percent over the next couple of years supported by improving outlook of non-mining investment; while inflation is estimated to pick up gradually as the economy strengthens. Interest Rate in Australia averaged 4.65 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 Holds Cash Rate Steady at 1.5% in November


The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent at its November 2017 meeting, as widely expected. Policymakers said the Australian economy is expected to advance at an annual rate of around 3 percent over the next couple of years supported by improving outlook of non-mining investment while 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 growth in the Australian economy are largely unchanged. The central forecast is for GDP growth to pick up and to average around 3 per cent over the next few years. Business conditions are positive and capacity utilisation has increased. The outlook for non-mining business investment has improved, with the forward-looking indicators being more positive than they have been for some time. Increased public infrastructure investment is also supporting the economy. One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high.

The labour market has continued to strengthen. Employment has been rising in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators continue to point to solid growth in employment over the period ahead. The unemployment rate is expected to decline gradually from its current level of 5½ per cent. 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 remains low, with both CPI and underlying inflation running a little below 2 per cent. In underlying terms, inflation is likely to remain low for some time, reflecting the slow growth in labour costs and increased competitive pressures, especially in retailing. CPI inflation is being boosted by higher prices for tobacco and electricity. The Bank's central forecast remains for inflation 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 income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers. Housing market conditions have eased further in Sydney. In most cities, housing prices have shown little change over recent months, although they are still increasing in Melbourne. 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 | rida@tradingeconomics.com
11/7/2017 3:53:05 AM



Calendar GMT Actual Previous Consensus TEForecast
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% 1.50% 1.5%
2017-11-21 12:30 AM RBA Meeting Minutes
2017-11-21 09:05 AM RBA Gov Lowe Speech
2017-12-05 03:30 AM RBA Interest Rate Decision 1.5% 1.5%


Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 1.99 2.05 18.18 1.90 percent [+]
Money Supply M0 106.17 105.83 106.17 4.09 AUD Billion [+]
Money Supply M1 353.85 357.66 357.66 8.25 AUD Billion [+]
Money Supply M3 2045.11 2043.16 2045.11 10.19 AUD Billion [+]
Banks Balance Sheet 4122.84 4187.32 4187.32 322.96 AUD Billion [+]
Central Bank Balance Sheet 166721.00 164020.00 200326.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 78112.00 74871.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 900.66 898.29 900.66 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 November 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
Country Last
Russia 8.25 Oct/17
Turkey 8.00 Oct/17
Brazil 7.50 Oct/17
Mexico 7.00 Nov/17
India 6.00 Oct/17
China 4.35 Oct/17
Indonesia 4.25 Nov/17
Australia 1.50 Nov/17
South Korea 1.25 Oct/17
United States 1.25 Nov/17
Canada 1.00 Oct/17
United Kingdom 0.50 Nov/17
Euro Area 0.00 Oct/17
France 0.00 Oct/17
Germany 0.00 Oct/17
Italy 0.00 Oct/17
Netherlands 0.00 Oct/17
Spain 0.00 Oct/17
Japan -0.10 Oct/17
Switzerland -0.75 Oct/17