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

The Reserve Bank of Australia kept the cash rate at a record low of 1.5 percent at its October meeting, as widely expected, extending its record period of policy inaction beyond two years, amid sluggishness in inflation and wages and the risk to global growth from trade policy in the US. Interest Rate in Australia averaged 4.51 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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RBA Holds Cash Rate at 1.5%


The Reserve Bank of Australia kept the cash rate at a record low of 1.5 percent at its October meeting, as widely expected, extending its record period of policy inaction beyond two years, amid sluggishness in inflation and wages and the risk to global growth from trade policy in the US.

Excerpt from the statement by the governor, Philip Lowe: 

Globally, inflation remains low, although it has increased due to both higher oil prices and some lift in wages growth. A further pick-up in inflation is expected given the tight labour markets, and in the United States, the sizeable fiscal stimulus. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.

Financial conditions in the advanced economies remain expansionary, although they are gradually becoming less so in some countries. Yields on government bonds have moved a little higher, but credit spreads generally remain low. There has been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined since the end of June. In response, some lenders have increased their standard variable mortgage rates by small amounts, while at the same time reducing mortgage rates for some new loans.

The latest national accounts confirmed that the Australian economy grew strongly over the past year, with GDP increasing by 3.4 per cent. The Bank's central forecast remains for growth to average a bit above 3 percent in 2018 and 2019. Business conditions are positive and non-mining business investment is expected to increase. Higher levels of public infrastructure investment are also supporting the economy, as is growth in resource exports. One continuing source of uncertainty is the outlook for household consumption. Growth in household income remains low and debt levels are high. The drought has led to difficult conditions in parts of the farm sector.

Australia's terms of trade have increased over the past couple of years due to rises in some commodity prices. While the terms of trade are expected to decline over time, they are likely to stay at a relatively high level. The Australian dollar remains within the range that it has been in over the past two years on a trade-weighted basis, but it has depreciated against the US dollar along with most other currencies.

The outlook for the labour market remains positive. The unemployment rate is trending lower and, at 5.3 percent, is the lowest in almost six years. The vacancy rate is high and there are reports of skills shortages in some areas. A further gradual decline in the unemployment rate is expected over the next couple of years to around 5 percent. Wages growth remains low, although it has picked up a little. The improvement in the economy should see some further lift in wages growth over time, although this is likely to be a gradual process.

Inflation is around 2 percent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some administered prices in the September quarter are expected to result in inflation in 2018 being a little lower than otherwise.

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
10/2/2018 4:48:32 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-08-07 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-09-04 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-10-02 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-10-22 02:00 AM RBA Debelle Speech
2018-10-22 10:35 PM RBA Debelle Speech
2018-10-30 02:00 AM RBA Bullock Speech


Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 2.44 2.26 18.18 1.87 percent [+]
Money Supply M0 108.67 108.69 110.24 4.09 AUD Billion [+]
Money Supply M1 355.11 352.84 358.22 8.25 AUD Billion [+]
Money Supply M3 2091.47 2074.81 2091.47 10.19 AUD Billion [+]
Banks Balance Sheet 4268.34 4224.39 4268.34 322.96 AUD Billion [+]
Central Bank Balance Sheet 171392.00 179810.00 202663.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 73681.00 70975.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 933.07 927.54 933.07 20.21 AUD Billion [+]
Deposit Interest Rate 1.90 1.90 17.25 1.90 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 October 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
Argentina 72.66 Oct/18
Turkey 24.00 Sep/18
Mexico 7.75 Oct/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Oct/18
South Africa 6.50 Sep/18
Indonesia 5.75 Sep/18
China 4.35 Sep/18
Saudi Arabia 2.75 Sep/18
United States 2.25 Sep/18
Australia 1.50 Oct/18
Canada 1.50 Sep/18
South Korea 1.50 Oct/18
Singapore 1.11 Sep/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18


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