The Reserve Bank of Australia raised the cash rate by 50bps to 2.35% during its September 2022 meeting, as expected. The move followed a 50-bps hike each in the prior three months and a 25-bps rise in May, bringing the cash rate to a level not seen since January 2015. The board said that it was seeking to bring inflation down to the 2–3% range while keeping the economy on an even keel. Policymakers reiterated that they expect to increase interest rates further over the months ahead, but it is not on a pre-set path as the size and timing will be guided by the incoming data. The central bank reaffirmed its commitment to doing what is necessary to ensure prices return to target while paying attention to any sign of deterioration in global economic growth due to monetary tightening in many countries, the war in Ukraine, and the anti-COVID measures and other policy challenges in China. The committee increased the interest rate on Exchange Settlement balances by 50bps to 2.25%. source: Reserve Bank of Australia

Interest Rate in Australia averaged 3.86 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 September of 2022.

Interest Rate in Australia is expected to be 2.35 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 3.35 percent in 2023 and 2.60 percent in 2024, according to our econometric models.

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Australia Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-07-05 04:30 AM RBA Interest Rate Decision 1.35% 0.85% 1.35% 1.35%
2022-08-02 04:30 AM RBA Interest Rate Decision 1.85% 1.35% 1.85% 1.85%
2022-09-06 04:30 AM RBA Interest Rate Decision 2.35% 1.85% 2.35% 2.35%
2022-10-04 03:30 AM RBA Interest Rate Decision 2.35% 2.60%
2022-10-05 12:30 AM RBA Chart Pack
2022-10-07 12:30 AM RBA Financial Stability Review


Related Last Previous Unit Reference
Interest Rate 2.35 1.85 percent Sep 2022
Money Supply M1 1668.25 1697.79 AUD Billion Jul 2022
Money Supply M0 549.50 522.69 AUD Billion Jul 2022
Interbank Rate 1.22 1.10 percent Sep 2019
Money Supply M3 2771.40 2755.04 AUD Billion Jul 2022
Central Bank Balance Sheet 616128.00 613986.00 AUD Million Sep 2022
Foreign Exchange Reserves 80573.00 79080.00 AUD Million Aug 2022
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar 2021
Loans to Private Sector 1161.18 1150.35 AUD Billion Jul 2022
Deposit Interest Rate 0.30 0.30 percent Aug 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
2.35 1.85 17.50 0.10 1990 - 2022 percent Daily

News Stream
RBA to Post Loss, Negative Equity: Bullock Speech
The Reserve Bank of Australia will report a substantial loss in its 2021/22 annual account and be in negative equity for the period due to its massive bond-buying program, Deputy Governor Michelle Bullock said in a speech. This will not, however, affect the central bank's ability to operate. "While it has not sought a capital injection, the board has indicated to the government that it expects that future profits will be retained until the bank's capital is restored," she added. The Treasurer has endorsed this general approach, noting that under the Reserve Bank Act the issue of distributions to the government is considered each year. The bond-buying program was implemented by the RBA as part of a package of measures designed to provide insurance against very bad economic outcomes as a result of the pandemic.
2022-09-21
Rate Hikes in Australia Could Slow: RBA Minutes
A further increase in interest rates in Australia was needed to help bring inflation back to the 2-3% target range and create a more sustainable balance of demand and supply in the economy, minutes of the Reserve Bank of Australia's September meeting showed. The board, however, sees a case for slowing the pace of hikes as the cash rate approached more normal settings. "All else equal, members saw the case for a slower pace of increase in interest rates as becoming stronger as the level of the cash rate rises." The full effects of higher interest rates were yet to be felt in mortgage payments, and the broader effects on activity and inflation would take some time to be apparent. The minutes reiterated that the size and timing of future interest rate increases will continue to be guided by the incoming data and were not on a pre-set path. The central bank raised its case rate by 50bps to 2.35% in early September, the fifth hike in as many months for a total rises of 225bps.
2022-09-20
RBA Still Sees More Rate Rises: Governor Lowe
Further rate hikes in Australia would be needed to cool surging inflation but the country's central bank was not on a pre-set path, Reserve Bank of Australia Governor Philip Lowe said in a speech. "We are conscious that there are lags in the operation of monetary policy and that interest rates have increased very quickly," he said. "We recognize that the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises." Lowe also mentioned that some slowing in the global economy due to easing supply chain and a pullback in commodity prices would help bring inflation lower but a sharp slowdown in economic activity would make the job of delivering a soft landing in Australia much harder. Answering questions after the speech, he said that the neutral level for the cash rate was at least 2.5%. Rates are currently at 2.35% after having been lifted by a total of 225 basis points in just five months.
2022-09-08