The Reserve Bank of Australia left the cash rate at a record low of 1.5 percent at its November meeting, as widely expected, extending its record period of policy inaction beyond two years. While reiterating that inflation is expected to pick up gradually over the next couple of years, policymakers said they revised up slightly the forecasts for economic growth in 2018 and 2019 to average around 3-1/2 percent amid positive business conditions and rising non-mining investment. Interest Rate in Australia averaged 4.49 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 Leaves Monetary Policy Unchanged


The Reserve Bank of Australia left the cash rate at a record low of 1.5 percent at its November meeting, as widely expected, extending its record period of policy inaction beyond two years. While reiterating that inflation is expected to pick up gradually over the next couple of years, policymakers said they revised up slightly the forecasts for economic growth in 2018 and 2019 to average around 3-1/2 percent amid positive business conditions and rising non-mining investment.

Excerpt from the statement by the governor, Philip Lowe: 

Globally, inflation remains low, although it has increased due to both higher oil prices and some lift in wages growth. A further pick-up in inflation is expected given the tight labour markets and, in the United States, the sizeable fiscal stimulus. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.

Financial conditions in the advanced economies remain expansionary but have tightened somewhat recently. Equity prices have declined and yields on government bonds in some economies have increased, although they remain low. There has also been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates have declined recently, after increasing earlier in the year. Standard variable mortgage rates are a little higher than a few months ago and the rates charged to new borrowers for housing are generally lower than for outstanding loans.

The Australian economy is performing well. Over the past year, GDP increased by 3.4 per cent and the unemployment rate declined to 5 per cent, the lowest in six years. The forecasts for economic growth in 2018 and 2019 have been revised up a little. The central scenario is for GDP growth to average around 3½ per cent over these two years, before slowing in 2020 due to slower growth in exports of resources. 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. Growth in household income remains low, debt levels are high and some asset prices have declined. 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 and have been stronger than earlier expected. This has helped boost national income. 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, although it is currently in the lower part of that range.

The outlook for the labour market remains positive. With the economy growing above trend, a further reduction in the unemployment rate is expected to around 4¾ per cent in 2020. The vacancy rate is high and there are reports of skills shortages in some areas. Wages growth remains low, although it has picked up a little. The improvement in the economy should see some further lift in wages growth over time, although this is still expected to be a gradual process.

Inflation remains low and stable. Over the past year, CPI inflation was 1.9 per cent and, in underlying terms, inflation was 1¾ per cent. These outcomes were in line with the Bank's expectations and were influenced by declines in some administered prices due to changes in government policies. Inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual. The central scenario is for inflation to be 2¼ per cent in 2019 and a bit higher in the following year.


ABS l Rida | rida@tradingeconomics.com
11/6/2018 4:03:45 AM



Calendar GMT Actual Previous Consensus TEForecast
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% 1.5% 1.5%
2018-11-06 03:30 AM RBA Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-11-20 12:30 AM RBA Meeting Minutes
2018-11-20 08:20 AM RBA Gov Lowe Speech
2018-12-04 03:30 AM RBA Interest Rate Decision 1.5% 1.5%


Australia Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 17.50 1.50 percent [+]
Interbank Rate 2.49 2.44 18.18 1.87 percent [+]
Money Supply M0 109.68 108.67 110.24 4.09 AUD Billion [+]
Money Supply M1 357.10 355.11 358.22 8.25 AUD Billion [+]
Money Supply M3 2092.84 2091.47 2092.84 10.19 AUD Billion [+]
Banks Balance Sheet 4278.05 4268.34 4278.05 322.96 AUD Billion [+]
Central Bank Balance Sheet 164291.00 166436.00 202663.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 64038.00 73681.00 88457.00 1126.00 AUD Million [+]
Loans to Private Sector 944.03 933.07 944.03 20.21 AUD Billion [+]
Deposit Interest Rate 1.90 1.90 17.25 1.90 percent [+]
Private Debt to GDP 205.50 208.60 210.90 120.50 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 November of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 17.50 1.50 1990 - 2018 percent Daily




Country Last
Argentina 63.29 Nov/18
Turkey 24.00 Oct/18
Mexico 8.00 Nov/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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