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 5.13 percent from 1990 until 2015, reaching an all time high of 17.50 percent in January of 1990 and a record low of 2.25 percent in February of 2015. 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 2.25 17.50 2.25 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, April 27, 2015.


Australia Holds Cash Rate Steady at 2.25%


The Reserve Bank of Australia left the cash rate unchanged at a record low 2.25 percent on April 7th. Policymakers said expect growth to continue below-trend and signaled further easing in coming months.

Excerpt from the statement by Glenn Stevens, Governor:

Moderate growth in the global economy is expected in 2015, with the US economy continuing to strengthen, even as China's growth slows a little from last year's outcome.

Commodity prices have declined over the past year, in some cases sharply. The price of oil in particular is much lower than it was a year ago. These trends appear to reflect a combination of lower growth in demand and, more importantly, significant increases in supply. The much lower levels of energy prices will act to strengthen global output and temporarily to lower CPI inflation rates. Prices for key Australian exports have also been falling and therefore Australia's terms of trade are continuing to decline.

Financial conditions are very accommodative globally, with long-term borrowing rates for several major sovereigns at all-time lows. Financing costs for creditworthy borrowers remain remarkably low.

In Australia the available information suggests that growth is continuing at a below-trend pace, with overall domestic demand growth quite weak as business capital expenditure falls. As a result, the unemployment rate has gradually moved higher over the past year. The economy is likely to be operating with a degree of spare capacity for some time yet. 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 is recording moderate growth overall. Growth in lending to investors in housing assets is stronger than to owner-occupiers, though neither appears to be picking up further at present. Lending to businesses, on the other hand, has been strengthening recently. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for equities and commercial property have risen, in part as a result of declining long-term interest rates.

The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems likely, 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.

The Board judged that it was appropriate to hold interest rates steady for the time being. Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target. The Board will continue to assess the case for such action at forthcoming meetings.
 
 

RBA l Rida Husna l rida@tradingeconomics.com
4/7/2015 9:25:21 AM


Recent Releases

Australia Holds Cash Rate at Record Low
The Reserve Bank of Australia left the cash rate unchanged at a record low 2.25 percent on March 3rd, following last month's cut. Yet, policymakers signaled further easing may occur in the coming meetings. Published on 2015-03-03

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. Published on 2015-02-03


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-04-07 05:30 AM
RBA Interest Rate Decision 
2.25% 2.25% 2.25% 2.25%
2015-04-20 06:05 PM
RBA Gov Glenn Speech 
2015-04-21 02:30 AM
RBA Meeting's Minutes 
2015-04-27 11:40 PM
RBA Gov Glenn Speech 
2015-05-05 05:30 AM
RBA Interest Rate Decision 
2.25% 2.25%
2015-05-19 02:30 AM
RBA Meeting's Minutes 


Australia Money Last Previous Highest Lowest Unit
Interest Rate 2.25 2.25 17.50 2.25 percent [+]
Interbank Rate 2.50 2.47 18.18 2.47 percent [+]
Money Supply M1 325408.00 316253.00 325408.00 8246.00 AUD Million [+]
Money Supply M3 1761084.00 1739687.00 1761084.00 10191.00 AUD Million [+]
Central Bank Balance Sheet 143498.00 156730.00 166360.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 74500.00 64321.00 84610.00 1126.00 AUD Million [+]
Loans to Private Sector 2063758.00 2049072.00 2063758.00 18595.00 AUD Million [+]
Banks Balance Sheet 3575.54 3456.38 3575.54 322.96 AUD Billion [+]
Money Supply M0 90.16 89.09 92.16 4.09 AUD Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Apr/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Apr/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Apr/15 0.05 4.75 0.05 percent [+]
France 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Apr/15 0.05 4.75 0.05 percent [+]
India 7.50 Apr/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Apr/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Apr/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Mar/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Russia 14.00 Mar/15 15.00 17.00 5.00 percent [+]
South Korea 1.75 Apr/15 1.75 5.25 1.75 percent [+]
Spain 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Mar/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Apr/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Apr/15 0.50 17.00 0.50 percent [+]
United States 0.25 Mar/15 0.25 20.00 0.25 percent [+]