Australia Interest Rate

The benchmark interest rate in Australia was last recorded at 2.50 percent. Interest Rate in Australia averaged 5.24 Percent from 1990 until 2014, reaching an all time high of 17.50 Percent in January of 1990 and a record low of 2.50 Percent in August of 2013. Interest Rate in Australia is reported by the Reserve Bank of Australia.

   
 
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Australia Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 17.50 2.50 1990 - 2014 Percent Monthly
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 Keeps Cash Rate at Record Low


At its July 1st, 2014 meeting, Reserve Bank of Australia decided to leave the cash rate unchanged at a record low of 2.5 percent awaiting the impact of decline in mining-investment boom on the labour market.

Excerpt from the statement by Glenn Stevens, Governor:

In Australia, recent data indicate somewhat firmer growth around the turn of the year, but this resulted mainly from very strong increases in resource exports as new capacity came on stream; smaller increases in such exports are likely in coming quarters. Moderate growth has been occurring in consumer demand. A strong expansion in housing construction is now under way. At the same time, resources sector investment spending is starting to decline significantly. Signs of improvement in investment intentions in some other sectors are emerging, but these plans remain tentative as firms wait for more evidence of improved conditions before committing to significant expansion. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend over the year ahead.

There has been some improvement in indicators for the labour market in recent months, but it will probably be some time yet before unemployment declines consistently. Growth in wages has declined noticeably. If these and other domestic costs remain contained, inflation should remain consistent with the target over the next one to two years, even with lower levels of the exchange rate.

Monetary policy remains accommodative. Interest rates are very low and for some borrowers have edged lower over recent months. Savers continue to look for higher returns in response to low rates on safe instruments. Credit growth has picked up a little, including most recently to businesses. Dwelling prices have increased significantly over the past year, though there have been some signs of a moderation in the pace of increase recently. The exchange rate remains high by historical standards, particularly given the declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy.

Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years.

In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.

Reserve Bank of Australia l Rida l rida@tradingeconomics.com
7/1/2014 9:43:49 AM


Recent Releases

Australia Leaves Rates on Hold
At its June 3rd, 2014 meeting, Reserve Bank of Australia decided to maintain the cash rate unchanged at a record low 2.5 percent, emphasizing the most prudent course to support demand and help strengthen growth over time is by delivering a period of stability in interest rates. Published on 2014-06-03

Australia Leaves Monetary Policy Unchanged
At its May 6th, 2014 meeting, Reserve Bank of Australia kept the cash rate at 2.5 percent and reiterated the official rate will stay unchanged at a record low for some time to come. Published on 2014-05-06


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-04-01 04:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-04-15 02:30 AM Australia
RBA Meeting's Minutes
2014-05-06 05:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-05-20 02:30 AM Australia
RBA Meeting's Minutes
2014-06-03 05:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%


Money Last Previous Highest Lowest Unit
Interest Rate 2.50 2.50 17.50 2.50 Percent [+]
Interbank Rate 2.88 2.77 18.18 2.58 Percent [+]
Money Supply M1 299129.00 298036.00 299129.00 8247.00 AUD Million [+]
Money Supply M3 1655576.00 1648642.00 1655576.00 10191.00 AUD Million [+]
Central Bank Balance Sheet 131706.00 146953.00 154448.00 86406.00 AUD Million [+]
Foreign Exchange Reserves 62875.00 65087.00 84610.00 1126.00 AUD Million [+]
Loans to Private Sector 1938603.00 1925637.00 1938603.00 18595.00 AUD Million [+]





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