The Reserve Bank of Australia raised its cash rate target by 25 bps to 4.60% in a unanimous September 2026 decision, in line with expectations, marking its fourth hike this year and taking borrowing costs to their highest since 2011. Policymakers noted that higher global energy prices following oil supply disruptions amid the broader Middle East conflict, stronger-than-expected recent inflation and persistent domestic capacity constraints are adding to inflation. AI-related demand is also driving increases in global technology goods prices, while firms report rising costs and plans to pass costs on. At the same time, output growth slowed but was slightly stronger than expected in Q2, while consumer spending is easing. Housing prices fell in most capital cities and new housing loans declined, while labour market conditions have now also eased. The Board said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target. source: Reserve Bank of Australia

The benchmark interest rate in Australia was last recorded at 4.60 percent. Interest Rate in Australia averaged 3.87 percent from 1990 until 2026, 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 October of 2026.

The benchmark interest rate in Australia was last recorded at 4.60 percent. Interest Rate in Australia is expected to be 4.85 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 4.35 percent in 2027 and 3.85 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-06-16 04:30 AM RBA Interest Rate Decision 4.35% 4.35% 4.35% 4.35%
2026-08-11 04:30 AM RBA Interest Rate Decision 4.35% 4.35% 4.35% 4.35%
2026-09-29 04:30 AM RBA Interest Rate Decision 4.6% 4.35% 4.6% 4.6%
2026-10-28 12:15 AM RBA Senate Appearance
2026-11-03 03:30 AM RBA Interest Rate Decision 4.6% 4.6%
2026-11-17 12:30 AM RBA Meeting Minutes


Related Last Previous Unit Reference
Central Bank Balance Sheet 346879.00 349795.00 AUD Million Oct 2026
Deposit Interest Rate 3.30 3.30 percent Sep 2026
Foreign Exchange Reserves 109715.00 106019.00 AUD Million Sep 2026
Interbank Rate 4.36 4.35 percent Sep 2026
RBA Interest Rate 4.60 4.35 percent Sep 2026
Private Sector Credit YoY 8.40 8.40 percent Aug 2026
Loans to Private Sector 1452.36 1440.60 AUD Billion Aug 2026
Money Supply M0 304.92 308.00 AUD Billion Aug 2026
Money Supply M1 2004.43 2026.41 AUD Billion Aug 2026
Money Supply M3 3497.28 3511.95 AUD Billion Aug 2026


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
4.60 4.35 17.50 0.10 1990 - 2026 percent Daily

News Stream
RBA Kent Questions Rate Restraint Despite Four Hikes
Reserve Bank of Australia Assistant Governor Christopher Kent said in a speech that mounting evidence of rising global neutral interest rates raises doubts over whether policy is as restrictive as assumed despite four hikes this year. While confident that policy is somewhat tight, he questioned whether it is tight enough. A higher neutral rate suggests the 4.6% cash rate may be exerting less drag on demand and inflation than policymakers expect, strengthening the case for keeping rates elevated or tightening further. His remarks come as the RBA weighs its next move after September’s hike, citing persistent inflation, energy costs linked to Middle East conflict, and capacity pressures. Kent noted household demand is softening while business credit remains strong, and housing tax changes support restraint. On labor, he cautioned against over-reading monthly data but acknowledged easing, with September employment down and unemployment at 4.7%, a five-year high.
2026-10-19
RBA Minutes Signal Further Rate Hikes as Inflation Persists
Minutes from the Reserve Bank of Australia’s September meeting showed that policymakers unanimously raised the cash rate by 25bps to 4.6%, citing persistent inflation risks. The meeting record also indicated that further rate hikes remained possible, as several upside threats flagged in August had materialised, including Middle East tensions driving oil above forecasts, global cost pressures partly tied to AI demand, and stronger domestic activity. Meanwhile, inflation readings exceeded expectations, with businesses reporting widespread cost pass-throughs. Short-term expectations stayed high, raising concern about medium-term drift. While the labour market eased broadly as anticipated, demand remained firm and capacity pressures stronger than assessed. Members warned that delaying action risked entrenching inflation after a prolonged period above target. They also noted that holding steady could weaken the Australian dollar as other central banks tightened.
2026-10-13
RBA Hikes Key Rate to 15-Year High
The Reserve Bank of Australia raised its cash rate target by 25 bps to 4.60% in a unanimous September 2026 decision, in line with expectations, marking its fourth hike this year and taking borrowing costs to their highest since 2011. Policymakers noted that higher global energy prices following oil supply disruptions amid the broader Middle East conflict, stronger-than-expected recent inflation and persistent domestic capacity constraints are adding to inflation. AI-related demand is also driving increases in global technology goods prices, while firms report rising costs and plans to pass costs on. At the same time, output growth slowed but was slightly stronger than expected in Q2, while consumer spending is easing. Housing prices fell in most capital cities and new housing loans declined, while labour market conditions have now also eased. The Board said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target.
2026-09-29