The Reserve Bank of Australia scrapped the 0.1% yield target on April 2024 government bond during its November meeting and omitted its prior projection that rates were unlikely to rise until 2024. At the same time, policymakers kept the cash rate unchanged at a record low of 0.1% for the 12th month in a row while continuing to buy government bonds at a pace of A$4 billion a week until at least mid-February 2022. The RBA noted the decision to end the yield target reflects the economic improvement and the earlier-than-expected progress over the inflation target. "The board is prepared to be patient, with the central forecast being for underlying inflation to be no higher than 21/2% at the end of 2023 and for only a gradual increase in wages growth." The RBA has been under pressure to change course since last week after data showed core inflation had jumped into its 2-3% target band. Meantime, Governor Philip Lowe said the latest data and forecasts did not warrant a rate rise in 2022. source: Reserve Bank of Australia

Interest Rate in Australia averaged 3.97 percent from 1990 until 2021, 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 December of 2021.

Interest Rate in Australia is expected to be 0.10 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 0.10 percent in 2022 and 0.25 percent in 2023, according to our econometric models.

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Australia Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-09-07 04:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-10-05 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-11-02 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1% 0.1%
2021-12-07 03:30 AM RBA Interest Rate Decision 0.1% 0.1% 0.1%
2021-12-08 12:30 AM RBA Chart Pack
2021-12-08 10:00 PM RBA Gov Lowe Speech


Related Last Previous Unit Reference
Interest Rate 0.10 0.10 percent Nov/21
Money Supply M1 1561.49 1535.46 AUD Billion Oct/21
Money Supply M0 503.26 484.18 AUD Billion Oct/21
Interbank Rate 1.22 1.10 percent Sep/19
Money Supply M3 2597.57 2581.49 AUD Billion Oct/21
Central Bank Balance Sheet 615750.00 608072.00 AUD Million Dec/21
Foreign Exchange Reserves 75966.00 82142.00 AUD Million Oct/21
Banks Balance Sheet 5169.50 5280.83 AUD Billion Mar/21
Loans to Private Sector 1042.22 1038.41 AUD Billion Oct/21
Deposit Interest Rate 0.05 0.05 percent Nov/21

News Stream
RBA Sees Economy to Rebound in Q4 and Q1
A bounce-back in domestic demand in Australia was forecast for Q4 2021 and Q1 2022 as curbs are eased further and vaccinations accelerate, minutes from the Reserve Bank of Australia's November monetary policy meeting showed. "Timely data on mobility, spending, and labor demand pointed to a strong rebound in parts of the country that had been most affected by the Delta outbreak," it added." The board said it was confident that by mid-2022, activity will be broadly in line with the pre-Delta recovery path. The GDP was forecast to grow by around 3% in 2021, 5-1/2% in 2022, and 2-1/2% in 2023. On prices, underlying inflation was expected to be around 2-1/4% by the end of 2022 and around 2-1/2% by the end of 2023. Headline inflation was expected to run above underlying inflation in the near term, due to a rise in fuel prices. “Given the latest data and forecasts, the central scenario for the economy continued to be consistent with the cash rate remaining at its current level until 2024."
2021-11-16
RBA Says Economy to Rebound in Q4 and Q1
The Reserve Bank of Australia said it expects the economy to bounce back rapidly in Q4 and Q1 2022 after contracting sharply in Q3, boosted by further easing of COVID-19 curbs and an upturn in consumption, the central bank said in its quarterly monetary policy statement. "By mid-2022, the outlook is broadly in line with the pre-Delta recovery path," it added. Under the central scenario, GDP is forecast to grow around 3% in 2021 from earlier projections of 4%, 5.5% in 2022, and 2.5% in 2023. On prices, the board ackowledged that inflation had returned to its 2-3% target band a full two years earlier than expected, leading it to scrap a commitment to keeping bond yields super-low. The central bank now sees that core inflation will hit 2.25% at the end of 2021, up from a prior prediction of 1.75%. However, further progress is seen as gradual so that inflation only reaches 2.5% by the end of 2023. Meantime, a rate hike in 2023 was plausible given the economy was on the road to recovery.
2021-11-05
RBA Drops Yield Target, Flags Earlier Rate Hike
The Reserve Bank of Australia scrapped the 0.1% yield target on April 2024 government bond during its November meeting and omitted its prior projection that rates were unlikely to rise until 2024. At the same time, policymakers kept the cash rate unchanged at a record low of 0.1% for the 12th month in a row while continuing to buy government bonds at a pace of A$4 billion a week until at least mid-February 2022. The RBA noted the decision to end the yield target reflects the economic improvement and the earlier-than-expected progress over the inflation target. "The board is prepared to be patient, with the central forecast being for underlying inflation to be no higher than 21/2% at the end of 2023 and for only a gradual increase in wages growth." The RBA has been under pressure to change course since last week after data showed core inflation had jumped into its 2-3% target band. Meantime, Governor Philip Lowe said the latest data and forecasts did not warrant a rate rise in 2022.
2021-11-02

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.