The Reserve Bank of Australia raised the cash rate by 25bps to 3.1% at its final meeting of 2022, matching market forecasts. The move marked the eighth straight rate hike, taking borrowing costs to a level not seen since November 2012, with the board flagging more rate hikes ahead as inflation in Australia is too high. Tuesday's widely anticipated decision takes the central bank's cumulative hikes since May to 3 percentage points, the sharpest annual tightening since 1989. The committee reiterated the policy rate was not on a pre-set course, as the size and timing of future rate increases will continue to be determined by the incoming data. The board added inflation in Australia would peak around 8% this year before easing in 2023 and reaching a little above 3% in 2024. Policymakers reaffirmed their commitment to bring inflation to target levels and will do what is necessary to achieve that. The RBA also increased the interest rate on Exchange Settlement balances by 25bps to 3.0%. 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 February of 2023.
Interest Rate in Australia is expected to be 3.60 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 2.85 percent in 2024 and 2.50 percent in 2025, according to our econometric models.