Australia Interest Rate 1990-2014 | Data | Chart | Calendar | Forecast

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.

   
 
 

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. Content for - Australia Interest Rate - was last refreshed on Wednesday, October 1, 2014.


Australia Keeps Cash Rate Steady at 2.5%


At its September 2nd, 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 over the next year and the labor market still shows some degree of spare capacity.

Excerpt from the statement by Glenn Stevens, Governor:

In Australia, the most recent survey data indicate gradually improving business conditions and some recovery in household sentiment after a weaker period around mid year, suggesting moderate growth in the economy is occurring. Resources sector investment spending is starting to decline significantly. Investment intentions in some other sectors continue to improve, though these areas of capital spending are expected to see only moderate growth in the near term. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend over the year ahead.

The recorded rate of unemployment has increased recently, despite some improvement in most other indicators for the labour market this year. The Bank's assessment remains that the labour market has a degree of spare capacity and that it will probably be some time yet before unemployment declines consistently. Growth in wages has declined noticeably and is expected to remain relatively modest over the period ahead, which should keep inflation consistent with the target even with lower levels of the exchange rate.

Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors 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. The increase in dwelling prices continues. The exchange rate, on the other hand, remains above most estimates of its fundamental value, particularly given the declines in key commodity prices. It is offering less assistance than would normally be expected 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 percent 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.

RBA l Rida l rida@tradingeconomics.com
9/2/2014 1:50:44 PM


Recent Releases

Australia Holds Key Rate at Record Low
At its August 5th meeting, the Reserve Bank of Australia decided to keep the cash rate unchanged at a record low of 2.5 percent as the growth is likely to stay a little below trend over the next year. Published on 2014-08-05

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. Published on 2014-07-01


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-06-03 05:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-06-17 02:30 AM Australia
RBA Meeting's Minutes
2014-07-01 05:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-07-15 02:30 AM Australia
RBA Meeting's Minutes
2014-08-05 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 2.79 18.18 2.58 Percent [+]
Money Supply M1 303466.00 299129.00 303466.00 8247.00 AUD Million [+]
Money Supply M3 1665651.00 1655576.00 1665651.00 10191.00 AUD Million [+]
Central Bank Balance Sheet 136301.00 142142.00 166360.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 62714.00 62872.00 84610.00 1126.00 AUD Million [+]
Loans to Private Sector 1960512.00 1938603.00 1960512.00 18595.00 AUD Million [+]
Banks Balance Sheet 3309.11 3251.74 3309.11 322.96 AUD Billion [+]
Money Supply M0 86.11 85.57 88.51 4.09 AUD Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Sep/14 2.50 17.50 2.50 Percent [+]
Brazil 11.00 Sep/14 11.00 45.00 7.25 Percent [+]
Canada 1.00 Sep/14 1.00 16.00 0.25 Percent [+]
China 6.00 Aug/14 6.00 10.98 5.31 Percent [+]
Euro Area 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
France 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Germany 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
India 8.00 Sep/14 8.00 14.50 4.25 Percent [+]
Indonesia 7.50 Sep/14 7.50 12.75 5.75 Percent [+]
Italy 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Japan 0.00 Sep/14 0.00 9.00 0.00 Percent [+]
Mexico 3.00 Sep/14 3.00 9.25 3.00 Percent [+]
Netherlands 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Russia 8.00 Sep/14 8.00 10.50 5.00 Percent [+]
South Korea 2.25 Sep/14 2.25 5.25 2.00 Percent [+]
Spain 0.05 Sep/14 0.15 4.75 0.05 Percent [+]
Switzerland 0.00 Sep/14 0.00 3.50 0.00 Percent [+]
Turkey 8.25 Sep/14 8.25 500.00 4.50 Percent [+]
United Kingdom 0.50 Sep/14 0.50 17.00 0.50 Percent [+]
United States 0.25 Sep/14 0.25 20.00 0.25 Percent [+]





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