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.

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Australia Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2023-04-04 04:30 AM RBA Interest Rate Decision 3.6% 3.6% 3.6% 3.6%
2023-05-02 04:30 AM RBA Interest Rate Decision 3.85% 3.6% 3.6% 3.6%
2023-06-06 04:30 AM RBA Interest Rate Decision 4.1% 3.85% 3.85% 3.85%
2023-07-04 04:30 AM RBA Interest Rate Decision
2023-07-05 01:30 AM RBA Chart Pack
2023-08-01 04:30 AM RBA Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 4.10 3.85 percent Jun 2023
Interbank Rate 3.57 3.51 percent Apr 2023
Money Supply M1 1631.94 1636.03 AUD Billion Apr 2023
Money Supply M0 546.34 553.22 AUD Billion Apr 2023
Money Supply M3 2877.20 2870.55 AUD Billion Apr 2023
Central Bank Balance Sheet 615085.00 612963.00 AUD Million May 2023
Foreign Exchange Reserves 92398.00 87543.00 AUD Million Apr 2023
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar 2021
Loans to Private Sector 1216.25 1210.82 AUD Billion Feb 2023
Deposit Interest Rate 2.40 2.00 percent May 2023

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
4.10 3.85 17.50 0.10 1990 - 2023 percent Daily

News Stream
Australia Unexpectedly Lifts Rates by 25Bps to 4.1%
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%.
2023-06-06
Further Rate Hikes May be Needed: RBA Minutes
The Reserve Bank of Australia's surprise decision to raise borrowing costs earlier this month was "finely balanced" as the central bank aimed at diminishing the risks of high inflation becoming entrenched in the economy, the board's May meeting minutes showed. During the meeting, members weighed up two options: holding steady the cash rate for the second straight month or increasing it for the 11th time in 12 gatherings. The central bank revealed that it does not expect inflation, which is currently at 7%, to return to the top of its 2 to 3% target range until June 2025, with concerns growing over an acceleration in services inflation and weak productivity growth. “Members agreed that further increases in interest rates may still be required, but that this would depend on how the economy and inflation evolve,” the minutes said.
2023-05-16
Reserve Bank of Australia Unexpectedly Hikes Rates
The Reserve Bank of Australia unexpectedly raised the cash rate by 25bps to 3.85% in May after maintaining it at 3.6% in April. This marks the 11th time the bank has raised rates in the past year, defying market predictions for a pause and pushing borrowing costs to their highest level since April 2012. The move was motivated by the bank's concern that the current inflation rate in Australia, which is at 7%, is still too high. Also, the labor market remains tight, with the unemployment rate at its lowest point in nearly half a century. The RBA stated that further tightening may be necessary to ensure inflation returns to the target range in a reasonable time frame. However, the bank's rate path will be influenced by how the economy and price pressures evolve over time. Projections indicate that inflation is expected to reach 4.5% this year and fall to 3% in mid-2025. In addition, the RBA also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.75%.
2023-05-02