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 September meeting, as widely expected, extending its record period of policy inaction beyond two years, amid weak inflation and low wage growth. Interest Rate in Australia averaged 4.52 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 Holds Cash Rate at 1.5% in September


The Reserve Bank of Australia kept the cash rate at a record low of 1.5% at its September meeting, as widely expected, extending its record period of policy inaction beyond two years, amid weak inflation and low wage growth.

Excerpt from the statement by the governor, Philip Lowe: 

Globally, inflation remains low, although it has increased in some economies and further increases are expected given the tight labour markets. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.

The Bank's central forecast is for growth of the Australian economy to average a bit above 3 per cent in 2018 and 2019. In the first half of 2018, the economy is estimated to have grown at an above-trend rate. 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. Household income has been growing slowly 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 has fallen to 5.3 per cent, the lowest level 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 per cent. Wages growth remains low, although it has picked up a little recently. 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 per cent. 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 headline inflation in 2018 being a little lower, at 1¾ per cent.

Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Housing credit growth has declined to an annual rate of 5½ per cent. This is largely due to reduced demand by investors as the dynamics of the housing market have changed. Lending standards are also tighter than they were a few years ago, partly reflecting APRA's earlier supervisory measures to help contain the build-up of risk in household balance sheets. There is competition for borrowers of high credit quality.

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
9/4/2018 5:59:09 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-07-03 04:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
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%
2018-10-12 12:30 AM RBA Financial Stability Review
2018-10-16 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 2.26 2.16 18.18 1.87 percent [+]
Money Supply M0 108.69 107.89 110.24 4.09 AUD Billion [+]
Money Supply M1 352.84 353.17 358.22 8.25 AUD Billion [+]
Money Supply M3 2074.81 2074.85 2074.85 10.19 AUD Billion [+]
Banks Balance Sheet 4268.34 4224.39 4268.34 322.96 AUD Billion [+]
Central Bank Balance Sheet 172822.00 175565.00 202663.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 70975.00 69102.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 927.00 922.08 927.00 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 September 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 60.00 Sep/18
Turkey 24.00 Sep/18
Mexico 7.75 Aug/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Aug/18
South Africa 6.50 Sep/18
Indonesia 5.50 Aug/18
China 4.35 Aug/18
Saudi Arabia 2.50 Aug/18
United States 2.00 Aug/18
Australia 1.50 Sep/18
Canada 1.50 Sep/18
South Korea 1.50 Aug/18
Singapore 1.06 Aug/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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