The Reserve Bank of Australia unexpectedly raised the cash rate by 25bps to 4.1% in June after delivering a rate hike by the same margin in May while keeping the door open for further tightening as inflation remained persistently high while wage growth picked up. Tuesday's decision brought a total of 400bps rate increases since May 2022, pushing borrowing costs to their highest level since April 2012 and defying market consensus for a pause. Policymakers viewed that the upside risks to the inflation outlook in Australia have increased, mainly due to service price inflation. The board added that it was still seeking to keep the economy on an even keel as inflation returns to the 2–3% target, but the path to achieving a soft landing remains a narrow one. The committee said it remains resolute in its determination to return inflation to target and will do what is necessary to achieve that. The central bank also increased the interest rate on Exchange Settlement balances by 25bps to 4.0%. source: Reserve Bank of Australia
Interest Rate in Australia averaged 3.84 percent from 1990 until 2023, 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 June of 2023.
Interest Rate in Australia is expected to be 4.10 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 3.10 percent in 2024 and 2.60 percent in 2025, according to our econometric models.