Australia Interest Rate 1990-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Australia was last recorded at 2.25 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.

      Forecast    
Australia Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
2.25 2.50 17.50 2.50 1990 - 2015 percent Daily
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. Content for - Australia Interest Rate - was last refreshed on Monday, March 2, 2015.


Australia Cuts Cash Rate to Record Low of 2.25%


The Reserve Bank of Australia cut the cash rate by 25 basis points to a fresh record low of 2.25 percent. Policymakers said further reduction in the rate was appropriate as the economy needs more support to bring growth to a sustainable level and inflation consistent with the target.

Excerpt from the statement by Glenn Stevens, Governor:

In Australia the available information suggests that growth is continuing at a below-trend pace, with domestic demand growth overall quite weak. As a result, the unemployment rate has gradually moved higher over the past year. The fall in energy prices can be expected to offer significant support to consumer spending, but at the same time the decline in the terms of trade is reducing income growth. Overall, the Bank's assessment is that output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected. The economy is likely to be operating with a degree of spare capacity for some time yet.

The CPI recorded the lowest increase for several years in 2014. This was affected by the sharp decline in oil prices at the end of the year and the removal of the price on carbon. Measures of underlying inflation also declined a little, to around 2¼ per cent over the year. With growth in labour costs subdued, it appears likely that inflation will remain consistent with the target over the next one to two years, even with a lower exchange rate.
Credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets. Dwelling prices have continued to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain economic risks that may arise from the housing market.

The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy.

For the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. 
 

RBA l Rida Husna l rida@tradingeconomics.com
2/3/2015 9:11:03 AM


Recent Releases

Australia Holds Cash Rate at Record Low
The Reserve Bank of Australia left the cash rate unchanged at a record low of 2.5 percent on December 2nd. Policymakers said they expect growth to be a bit below trend for the next few quarters and lower exchange rate may be needed to achieve balanced growth. Published on 2014-12-02

Australia Holds Cash Rate Steady at 2.5%
At its November 4th, 2014 meeting, the Reserve Bank of Australia decided to keep the cash rate unchanged at a record low of 2.5 percent, as growth is likely to stay a little below trend for the next several quarters, while credit growth is moderate overall but with a further pick-up in recent months. Published on 2014-11-04


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-12-16 12:30 AM
RBA Meeting's Minutes 
2015-02-03 03:30 AM
RBA Interest Rate Decision 
2.25% 2.5% 2.5% 2.5%
2015-02-17 12:30 AM
RBA Meeting's Minutes 
2015-03-03 03:30 AM
RBA Interest Rate Decision 
2.25% 2% 2.25%
2015-03-17 12:30 AM
RBA Meeting's Minutes 
2015-03-19 12:30 AM
RBA Bulletin 


Australia Money Last Previous Highest Lowest Unit
Interest Rate 2.25 2.50 17.50 2.50 percent [+]
Interbank Rate 2.69 3.02 18.18 2.57 percent [+]
Money Supply M1 316253.00 309905.00 316253.00 8246.00 AUD Million [+]
Money Supply M3 1739687.00 1732501.00 1739687.00 10191.00 AUD Million [+]
Central Bank Balance Sheet 146549.00 139844.00 166360.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 62537.00 65705.00 84610.00 1126.00 AUD Million [+]
Loans to Private Sector 2049072.00 2037136.00 2049072.00 18595.00 AUD Million [+]
Banks Balance Sheet 3456.38 3329.60 3456.38 322.96 AUD Billion [+]
Money Supply M0 89.09 92.16 92.16 4.09 AUD Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Feb/15 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Feb/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Feb/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Feb/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jan/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 15.00 Jan/15 17.00 17.00 5.00 percent [+]
South Korea 2.00 Feb/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.50 Feb/15 7.75 500.00 4.50 percent [+]
United Kingdom 0.50 Feb/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jan/15 0.25 20.00 0.25 percent [+]