The Reserve Bank of Australia kept the cash rate at a record low of 1.5 percent at its April meeting, as widely expected, extending its record period of policy inaction for the 32nd consecutive month. Policymakers noted that the inflation rate remains low and stable and said that in the near term headline inflation is expected to fall due to lower oil prices earlier this year, while underlying inflation is projected to remain broadly stable. Also, the Committee reiterated that it will continue to monitor developments and set monetary policy to support sustainable economic growth and achieve the inflation target over time. Interest Rate in Australia averaged 4.48 percent from 1990 until 2018, 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.

Interest Rate in Australia is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Australia to stand at 1.00 in 12 months time. In the long-term, the Australia Interest Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.

Australia Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-04 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2019-02-05 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2019-03-05 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2019-04-02 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2019-05-07 04:30 AM RBA Interest Rate Decision 1.5%
2019-05-10 01:30 AM RBA Statement on Monetary Policy
2019-05-21 01:30 AM RBA Meeting Minutes



Australia Holds Cash Rate Steady at 1.5%

The Reserve Bank of Australia kept the cash rate at a record low of 1.5 percent at its April meeting, as widely expected, extending its record period of policy inaction for the 32nd consecutive month. Policymakers noted that the inflation rate remains low and stable and said that in the near term headline inflation is expected to fall due to lower oil prices earlier this year, while underlying inflation is projected to remain broadly stable. The Committee reiterated that it will continue to monitor developments and set monetary policy to support sustainable economic growth and achieve the inflation target over time.

Excerpt from the statement by the governor, Philip Lowe: 

The outlook for the global economy remains reasonable, although growth has slowed and downside risks have increased. Growth in international trade has declined and investment intentions have softened in a number of countries. In China, the authorities have taken steps to ease financing conditions, partly in response to slower growth in the economy. Globally, headline inflation rates have moved lower following the earlier decline in oil prices, although core inflation has picked up in a number of economies. In most advanced economies, unemployment rates are low and wages growth has picked up.

The Australian labour market remains strong. There has been a significant increase in employment and the unemployment rate is at 4.9 per cent. The vacancy rate remains high and there are reports of skills shortages in some areas. The stronger labour market has led to some pick-up in wages growth, which is a welcome development. Continued improvement in the labour market is expected to see some further lift in wages growth over time, although this is still expected to be a gradual process.

The GDP data paint a softer picture of the economy than do the labour market data. GDP rose by just 0.2 per cent in the December quarter to be 2.3 per cent higher over 2018. Growth in household consumption is being affected by the protracted period of weakness in real household disposable income and the adjustment in housing markets. The drought in parts of the country has also affected farm output. Offsetting these factors, higher levels of spending on public infrastructure and an upswing in private investment are supporting the growth outlook, as is the steady growth in employment.

The adjustment in established housing markets is continuing, after the earlier large run-up in prices in some cities. Conditions remain soft and rent inflation remains low. Credit conditions for some borrowers have tightened a little further over the past year or so. At the same time, the demand for credit by investors in the housing market has slowed noticeably as the dynamics of the housing market have changed. Growth in credit extended to owner-occupiers has eased. Mortgage rates remain low and there is strong competition for borrowers of high credit quality.

Inflation remains low and stable. Underlying inflation is expected to pick up gradually over the next couple of years, although this has been taking a little longer than earlier expected. The central scenario is for underlying inflation to be 2 per cent this year and 2¼ per cent in 2020. In the near term, headline inflation is expected to decline because of lower petrol prices earlier in the year, while underlying inflation is expected to remain broadly stable.

The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Board judged that it was appropriate to hold the stance of policy unchanged at this meeting. The Board will continue to monitor developments and set monetary policy to support sustainable growth in the economy and achieve the inflation target over time.


RBA l Rida Husna | rida@tradingeconomics.com
4/2/2019 3:58:08 AM



Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Money Supply M0 112.49 113.87 114.54 4.09 AUD Billion [+]
Money Supply M1 356.14 356.38 357.95 8.25 AUD Billion [+]
Interbank Rate 2.02 2.06 18.18 1.87 percent [+]
Money Supply M3 2125.55 2110.37 2125.55 10.19 AUD Billion [+]
Foreign Exchange Reserves 77092.00 68492.00 88457.00 1126.00 AUD Million [+]
Banks Balance Sheet 4340.82 4278.05 4340.82 322.96 AUD Billion [+]
Central Bank Balance Sheet 162243.00 171121.00 202663.00 30418.00 AUD Million [+]
Loans to Private Sector 959.58 955.73 959.58 20.21 AUD Billion [+]
Deposit Interest Rate 1.85 1.85 17.25 1.85 percent [+]
Private Debt to GDP 205.50 208.60 210.90 120.50 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 April of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 17.50 1.50 1990 - 2019 percent Daily




Country Last Previous
Argentina 67.12 Apr/19
Turkey 24.00 Mar/19
Mexico 8.25 Mar/19
Russia 7.75 Mar/19
South Africa 6.75 Mar/19
Brazil 6.50 Mar/19
India 6.00 Apr/19
Indonesia 6.00 Mar/19
China 4.35 Mar/19
Saudi Arabia 3.00 Mar/19
United States 2.50 Mar/19
Singapore 2.24 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Apr/19
Australia 1.50 Apr/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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