The Reserve Bank of Australia raised the cash rate by 50 bps to 0.85% during its June 2022 meeting. This was the first back-to-back rate hike in 12 years, as the board said huge monetary support is no longer needed amid the strength of the economy and the current inflation pressures. In addition, the labor market is strong, as employment has grown and the jobless rate was at its lowest in near 50 years. Policymakers warned that further tightening is in the pipeline, with its size and timing being guided by the incoming data and the board's view of the outlook for inflation and the labor market. The committee reiterated that it was committed to doing what is necessary to ensure inflation returns to target while paying attention to the global outlook, which stays clouded by the war in Ukraine and its effect on prices of energy and commodities. The board increased the interest rate on Exchange Settlement balances by 50 bps to 0.75%.. source: Reserve Bank of Australia

Interest Rate in Australia averaged 3.88 percent from 1990 until 2022, 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 July of 2022.

Interest Rate in Australia is expected to be 0.85 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 4.40 percent in 2023 and 4.00 percent in 2024, according to our econometric models.

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Australia Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-04-05 04:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2022-05-03 04:30 AM RBA Interest Rate Decision 0.35% 0.1% 0.25% 0.25%
2022-06-07 04:30 AM RBA Interest Rate Decision 0.85% 0.35% 0.6% 0.6%
2022-07-05 04:30 AM RBA Interest Rate Decision 0.85% 1.35% 1.35%
2022-07-06 01:30 AM RBA Chart Pack
2022-07-19 01:30 AM RBA Meeting Minutes


Related Last Previous Unit Reference
Interest Rate 0.85 0.35 percent Jun 2022
Money Supply M1 1693.13 1677.71 AUD Billion Apr 2022
Money Supply M0 540.73 542.48 AUD Billion Apr 2022
Interbank Rate 1.22 1.10 percent Sep 2019
Money Supply M3 2701.96 2690.22 AUD Billion Apr 2022
Central Bank Balance Sheet 607082.00 600786.00 AUD Million Jun 2022
Foreign Exchange Reserves 77339.00 77499.00 AUD Million May 2022
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar 2021
Loans to Private Sector 1115.88 1094.42 AUD Billion Apr 2022
Deposit Interest Rate 0.10 0.05 percent May 2022

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
0.85 0.35 17.50 0.10 1990 - 2022 percent Daily

News Stream
RBA Reaffirms More Rate Hikes Ahead: June Minutes
The Reserve Bank of Australia flagged more rate hikes over the months ahead amid current inflation pressures and the still very low level of interest rates in the country, the minutes of the central bank's June meeting showed. "The size and timing of future interest rate increases will continue to be guided by the incoming data and the board's assessment of the outlook for inflation and the labor market, including the risks to the outlook," it added. The committee reiterated its commitment to doing what is necessary to ensure that inflation returns to the target over time. Meantime, Governor Philip Lowe said in a speech that Australia's inflation to peak at around 7% by the end of the year as pandemic-related supply chain disruptions resolve. He mentioned that monetary policy tightening and interest rate hikes globally would work together to drive down inflation by creating a balance between the demand and supply of goods.
2022-06-21
RBA Delivers 50 bps Rate Hike, Hints More Tightening
The Reserve Bank of Australia raised the cash rate by 50 bps to 0.85% during its June 2022 meeting. This was the first back-to-back rate hike in 12 years, as the board said huge monetary support is no longer needed amid the strength of the economy and the current inflation pressures. In addition, the labor market is strong, as employment has grown and the jobless rate was at its lowest in near 50 years. Policymakers warned that further tightening is in the pipeline, with its size and timing being guided by the incoming data and the board's view of the outlook for inflation and the labor market. The committee reiterated that it was committed to doing what is necessary to ensure inflation returns to target while paying attention to the global outlook, which stays clouded by the war in Ukraine and its effect on prices of energy and commodities. The board increased the interest rate on Exchange Settlement balances by 50 bps to 0.75%.
2022-06-07
RBA Sees More Rate Hikes: May Meeting Minutes
Inflation in Australia had increased substantially in Q1 of 2022 and was above the target range of 2 to 3%, the minutes of the Reserve Bank of Australia's May meeting showed. "It is expected to increase further in the near term before falling back towards the top of the target range by mid-2024." With that in mind, members viewed that there was a risk of inflation pressure building even further if it had waited any longer to raise the cash rate for the first time in over a decade. They also agreed that further increases in interest rates would likely be required to ensure that inflation returns to the target over time. In making its decisions, the board also agreed that it will continue to be guided by the evidence on both inflation and the labor market, while noting that significant uncertainties remain.
2022-05-17