The Reserve Bank of Australia raised the cash rate by 25 bps to 0.35% during its May 2022 meeting, larger than market consensus of a 15 bps hike. This was the first rate hike since November 2010, with the board flagging further tightening to come as it seeks to tame surging prices. The central bank said the economy had proven to be resilient while inflation had picked up more quickly, and there was also evidence that wages growth was picking up. The central forecast for the Australian GDP is to grow by 4-1/4% in 2022 and 2% in 2023, it added. Meantime, household and business balance sheets are generally in good shape, an upswing in business investment is underway and there is a large pipeline of construction work to be completed. 2022 headline inflation is projected at around 6% and underlying inflation of around 4-3/4% before easing to around 3% by mid 2024. The committee also increased the interest rate on Exchange Settlement balances from 0% to 25 bps. source: Reserve Bank of Australia

Interest Rate in Australia averaged 3.89 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 May of 2022.

Interest Rate in Australia is expected to be 0.50 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 2.00 percent in 2023 and 2.25 percent in 2024, according to our econometric models.

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Australia Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-03-01 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
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%
2022-05-17 01:30 AM RBA Meeting Minutes
2022-05-22 11:05 PM RBA Kent Speech
2022-05-24 11:45 PM RBA Ellis Speech


Related Last Previous Unit Reference
Interest Rate 0.35 0.10 percent May 2022
Money Supply M1 1677.71 1663.77 AUD Billion Mar 2022
Money Supply M0 542.48 552.12 AUD Billion Mar 2022
Interbank Rate 1.22 1.10 percent Sep 2019
Money Supply M3 2690.22 2666.55 AUD Billion Mar 2022
Central Bank Balance Sheet 617224.00 610813.00 AUD Million May 2022
Foreign Exchange Reserves 77499.00 77014.00 AUD Million Apr 2022
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar 2021
Loans to Private Sector 1094.42 1085.98 AUD Billion Mar 2022
Deposit Interest Rate 0.05 0.05 percent Apr 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
0.35 0.10 17.50 0.10 1990 - 2022 percent Daily

News Stream
Australia Flags More Rate Hikes
The Reserve Bank of Australia is committed to doing what is necessary to ensure that inflation in the country returns to target over time, the central bank said in its quarterly statement on monetary policy. The board mentioned that core inflation could hit 4.6% by December, a two percentage points higher than its forecast made in February. That would be well above the RBA's 2-3% target band with inflation only seen returning to the top of the band by mid- 2024. "This will require a further lift in interest rates." The central bank has raised the cash rate by 25 bps to 0.35%, the first rise in over a decade. On unemployment, it was now forecast to drop further to 50-year lows of 3.6% over the year ahead. Annual wage growth is seen accelerating to 3.0% by the end of 2022, from the current 2.3%, and to 3.7% by mid-2024. On the GDP outlook, the committee forecast the economy would grow by 2.5% this year, before slowing to 2% in 2023 due to rising rates and a slowdown in house prices.
2022-05-06
Australia Hikes Cash Rate for 1st Time in Over A Decade
The Reserve Bank of Australia raised the cash rate by 25 bps to 0.35% during its May 2022 meeting, larger than market consensus of a 15 bps hike. This was the first rate hike since November 2010, with the board flagging further tightening to come as it seeks to tame surging prices. The central bank said the economy had proven to be resilient while inflation had picked up more quickly, and there was also evidence that wages growth was picking up. The central forecast for the Australian GDP is to grow by 4-1/4% in 2022 and 2% in 2023, it added. Meantime, household and business balance sheets are generally in good shape, an upswing in business investment is underway and there is a large pipeline of construction work to be completed. 2022 headline inflation is projected at around 6% and underlying inflation of around 4-3/4% before easing to around 3% by mid 2024. The committee also increased the interest rate on Exchange Settlement balances from 0% to 25 bps.
2022-05-03
RBA Opens Door to Tightening: April Minutes
Inflation in Australia has picked up and a further increase was expected, with measures of underlying inflation in the March quarter expected to be above 3%, the Reserve Bank of Australia's April meeting minutes showed. "Wages growth has also picked up but, in aggregate terms, had been below rates likely to be consistent with inflation being sustainably at the target," it added. Further, the economy has remained resilient while spending was picking up following the setback caused by the outbreak and the Omicron strain. These developments have brought forward the likely timing of the first increase in interest rates. Over coming months, important additional evidence will be available on both inflation and the evolution of labor costs. Consistent with its announced framework, the board agreed that it would be appropriate to assess this evidence and other incoming information as it sets policy to support full employment and inflation outcomes consistent with the target.
2022-04-19