The Reserve Bank of Australia unanimously raised the cash rate by 25bps to 3.85% at its first policy meeting of 2026, in line with market expectations. The decision marked the first rate hike since November 2023, underscoring renewed cost pressures that intensified in H2 2025 amid elevated service expenses and a tight labor market, effectively reversing one of last year’s three cuts. The central bank viewed that inflation is likely to remain above the 2–3% target band for some time, reflecting stronger economic momentum and a healthy job market. The board added that further policy moves will depend on incoming economic data and its evolving assessment of the outlook and risks, including the balance between curbing inflation and sustaining economic growth. While acknowledging progress made in easing inflation over the past year, policymakers stressed that maintaining price stability remains their primary focus, signaling a cautious but data-dependent approach to future tightening. source: Reserve Bank of Australia

The benchmark interest rate in Australia was last recorded at 3.85 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 February of 2026.

The benchmark interest rate in Australia was last recorded at 3.85 percent. Interest Rate in Australia is expected to be 3.85 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 3.60 percent in 2027 and 3.10 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-11-04 03:30 AM RBA Interest Rate Decision 3.6% 3.6% 3.6% 3.6%
2025-12-09 03:30 AM RBA Interest Rate Decision 3.6% 3.6% 3.6% 3.6%
2026-02-03 03:30 AM RBA Interest Rate Decision 3.85% 3.6% 3.85% 3.85%
2026-03-05 12:00 AM RBA Payments System Board Meeting
2026-03-17 03:30 AM RBA Interest Rate Decision
2026-05-05 04:30 AM RBA Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 369145.00 373147.00 AUD Million Jan 2026
Deposit Interest Rate 2.85 2.70 percent Dec 2025
Foreign Exchange Reserves 112452.00 110533.00 AUD Million Dec 2025
Interbank Rate 3.60 3.60 percent Jan 2026
RBA Interest Rate 3.85 3.60 percent Feb 2026
Private Sector Credit YoY 7.70 7.40 percent Dec 2025
Loans to Private Sector 1354.81 1344.79 AUD Billion Dec 2025
Money Supply M0 315.00 325.43 AUD Billion Dec 2025
Money Supply M1 1952.98 1937.08 AUD Billion Dec 2025
Money Supply M3 3350.20 3333.09 AUD Billion Dec 2025


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
3.85 3.60 17.50 0.10 1990 - 2026 percent Daily

News Stream
Australia Raises Cash Rate for First Time Since Late 2023
The Reserve Bank of Australia unanimously raised the cash rate by 25bps to 3.85% at its first policy meeting of 2026, in line with market expectations. The decision marked the first rate hike since November 2023, underscoring renewed cost pressures that intensified in H2 2025 amid elevated service expenses and a tight labor market, effectively reversing one of last year’s three cuts. The central bank viewed that inflation is likely to remain above the 2–3% target band for some time, reflecting stronger economic momentum and a healthy job market. The board added that further policy moves will depend on incoming economic data and its evolving assessment of the outlook and risks, including the balance between curbing inflation and sustaining economic growth. While acknowledging progress made in easing inflation over the past year, policymakers stressed that maintaining price stability remains their primary focus, signaling a cautious but data-dependent approach to future tightening.
2026-02-03
RBA Sees Upside Risks to Inflation Outlook: December Minutes
Australia’s central bank this month considered whether a rise in interest rates might be needed in 2026, given a recent pick-up in inflation, but felt it would take a “little” time to know for sure. The board of the Reserve Bank of Australia (RBA) judged that inflation risks had increased following surprisingly high consumer price readings in October and Q3, minutes from the RBA’s December meeting showed. However, some of the lift in inflation could be due to volatile factors, and it would be important to see the Q4 figures due in late January. “Members discussed the circumstances in which … an increase in the cash rate might need to be considered at some point in the coming year,” the minutes showed. “While recent data suggested the risks to inflation had tilted to the upside, members felt it would take a little longer to assess the persistence of inflationary pressures.” CPI surged to 3.8% in October, while core inflation accelerated to 3.3%, above the RBA’s target band of 2% to 3%.
2025-12-23
Australia Holds Cash Rate, Flags Inflation Risks
The Reserve Bank of Australia unanimously kept the cash rate unchanged at 3.6% for a third straight meeting in its final policy decision of 2025, in line with market estimates, maintaining borrowing costs at their lowest since April 2023. The central bank noted inflation has eased markedly from its 2022 peak but has shown a pickup recently. While some of the rise appears temporary, early signals point to broader and persistent price pressures, warranting close monitoring. The labour market was described as “a little tight,” with unemployment edging higher and job growth slowing, yet underutilization remains low, and firms continue to face hiring difficulties. The board warned of uncertainty over domestic and global outlooks, including how restrictive current settings remain. Stronger-than-expected private-sector momentum could intensify capacity strains if sustained. Against this backdrop, policymakers judged it prudent to remain cautious and reassess policy as new data emerge.
2025-12-09