Australia Interest Rate  1990-2018 | Data | Chart | Calendar | Forecast

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent at its June meeting, as widely expected. Policymakers said the Australian economy is projected to grow a bit above 3 percent in 2018 and 2019, supported by positive business conditions and rising non-mining investment; while inflation is likely to remain low for some time. Interest Rate in Australia averaged 4.56 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.

Australia Interest Rate
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Australia Leaves Monetary Policy Unchanged


The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent at its June meeting, as widely expected. Policymakers said the Australian economy is projected to grow a bit above 3 percent in 2018 and 2019, supported by positive business conditions and rising non-mining investment; while inflation is likely to remain low for some time.

Excerpt from the statement by the governor, Philip Lowe: 

The recent data on the Australian economy have been consistent with the Bank's central forecast for GDP growth to pick up, to average a bit above 3 per cent in 2018 and 2019. Business conditions are positive and non-mining business investment is increasing. Higher levels of public infrastructure investment are also supporting the economy. Stronger growth in exports is expected. One continuing source of uncertainty is the outlook for household consumption. Household income has been growing slowly and debt levels are high.

Employment has grown strongly over the past year, although growth has slowed over recent months. The strong growth in employment has been accompanied by a significant rise in labour force participation, particularly by women and older Australians. The unemployment rate has been little changed at around 5½ percent for much of the past year. The various forward-looking indicators continue to point to solid growth in employment in the period ahead, with a gradual reduction in the unemployment rate expected. Wages growth remains low. This is likely to continue for a while yet, although the stronger economy should see some lift in wages growth over time. Consistent with this, the rate of wages growth appears to have troughed and there are reports that some employers are finding it more difficult to hire workers with the necessary skills.

Inflation is low and is likely to remain so for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018.

The Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

The housing markets in Sydney and Melbourne have slowed. Nationwide measures of housing prices are little changed over the past six months, with prices having recorded falls in some areas. Housing credit growth has slowed over the past year, especially to investors. APRA's supervisory measures and tighter credit standards have been helpful in containing the build-up of risk in household balance sheets, although the level of household debt remains high. While there may be some further tightening of lending standards, the average mortgage interest rate on outstanding loans is continuing to decline.

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 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 | rida@tradingeconomics.com
6/5/2018 5:19:21 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-04-03 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-05-01 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-06-05 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-06-26 02:40 AM RBA Richards Speech
2018-07-03 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5%
2018-07-17 12:30 AM RBA Meeting Minutes


Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 2.11 2.21 18.18 1.87 percent [+]
Money Supply M0 108.11 107.99 110.24 4.09 AUD Billion [+]
Money Supply M1 354.96 355.71 358.22 8.25 AUD Billion [+]
Money Supply M3 2062.09 2068.45 2068.45 10.19 AUD Billion [+]
Banks Balance Sheet 4224.39 4131.61 4224.39 322.96 AUD Billion [+]
Central Bank Balance Sheet 199341.00 199071.00 202663.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 82465.00 72752.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 919.05 912.04 919.05 20.21 AUD Billion [+]
Deposit Interest Rate 1.90 1.90 17.25 1.90 percent [+]
Private Debt to GDP 204.90 208.50 210.90 120.50 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 June of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 17.50 1.50 1990 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jun/18
Mexico 7.75 Jun/18
Russia 7.25 Jun/18
Brazil 6.50 Jun/18
India 6.25 Jun/18
Indonesia 4.75 May/18
China 4.35 May/18
United States 2.00 Jun/18
Australia 1.50 Jun/18
South Korea 1.50 May/18
Canada 1.25 May/18
United Kingdom 0.50 Jun/18
Euro Area 0.00 Jun/18
France 0.00 Jun/18
Germany 0.00 Jun/18
Italy 0.00 Jun/18
Netherlands 0.00 Jun/18
Spain 0.00 Jun/18
Japan -0.10 Jun/18
Switzerland -0.75 Jun/18


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