Australia Interest Rate

The benchmark interest rate in Australia was last recorded at 2.50 percent. Interest Rate in Australia is reported by the Reserve Bank of Australia. Interest Rate in Australia averaged 5.29 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. 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. 2014-04-23

Actual Previous Highest Lowest Forecast Dates Unit Frequency
2.50 2.50 17.50 2.50 2.50 | 2014/05 1990 - 2014 Percent Monthly

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Australia Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-12-03 03:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2013-12-17 10:30 PM Australia
RBA's Governor Glenn Stevens Speech
2014-02-04 03:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-02-18 12:30 AM Australia
RBA Meeting's Minutes
2014-03-04 03:30 AM Australia
RBA Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-03-18 12:30 AM Australia
RBA Meeting's Minutes
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Money Last Previous Highest Lowest Forecast Unit
Central Bank Balance Sheet 130502.00 2014-04-09 138442.00 142581.00 86406.00 62069.88 2014-03-31 AUD Million [+]
Foreign Exchange Reserves 62206.00 2014-03-31 51806.00 84610.00 1126.00 64532.47 2014-04-30 AUD Million [+]
Interbank Rate 2.68 2014-03-31 2.68 18.18 2.58 2.75 2014-04-30 Percent [+]
Loans to Private Sector 1904774.00 2014-02-28 1892702.00 1904774.00 18595.00 1914671.61 2014-03-31 AUD Million [+]
Money Supply M1 291721.00 2014-02-28 289881.00 291721.00 8247.00 291886.91 2014-03-31 AUD Million [+]
Money Supply M3 1630285.00 2014-02-28 1617754.00 1630285.00 10191.00 1638960.74 2014-03-31 AUD Million [+]
Interest Rate 2.50 2014-04-01 2.50 17.50 2.50 2.50 2014-05-31 Percent [+]
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Australia Leaves Rate Steady at 2.5%

At its April 1st, 2014 meeting, the Reserve Bank of Australia decided to leave the cash rate unchanged at 2.5 percent, as it considers the current policy stance appropriate to support demand and growth.

Excerpt from the statement by Glenn Stevens, Governor:

In Australia, the economy grew at a below trend pace in 2013. Recent information suggests slightly firmer consumer demand over the summer and foreshadows a solid expansion in housing construction. Some indicators of business conditions and confidence have improved from a year ago and exports are rising. But at the same time, resources sector investment spending is set to decline significantly and, at this stage, signs of improvement in investment intentions in other sectors are only tentative, as firms wait for more evidence of improved conditions before committing to expansion plans. Public spending is scheduled to be subdued.

The demand for labour has remained weak and, as a result, the rate of unemployment has continued to edge higher. It will probably rise a little further in the near term. Growth in wages has declined noticeably. If domestic costs remain contained, some moderation in the growth of prices for non-traded goods could be expected over time, 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 savers continue to look for higher returns in response to low rates on safe instruments. Credit growth is slowly picking up. Dwelling prices have increased significantly over the past year. The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months. The exchange rate remains high by historical standards.

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.

RBA | Joana Taborda | joana.taborda@tradingeconomics.com
4/1/2014 10:19:19 AM

RECENT RELEASES

Australia Leaves Monetary Policy Unchanged
At its March 4th, the Reserve Bank of Australia decided to leave cash rate unchanged at 2.5 percent for the sixth straight meeting, after sending a strong signal last month it wanted a period of interest rate stability. Published on 2014-03-04

Reserve Bank of Australia Leaves Rate on Hold
At its February 4th, 2014 meeting, Reserve Bank of Australia decided to leave the cash rate unchanged at 2.5 percent, as widely expected, as present monetary policy is considered appropriate to foster growth in demand and keep inflation within the 2-3 percent target. Published on 2014-02-04


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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