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.

   
  Forecast  

Australia Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 17.50 2.50 1990 - 2014 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 Sunday, November 23, 2014.


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.

The central bank also said growth in wages is expected to remain relatively modest over the period ahead. Further, it considered the weakening property market in China had presented a challenge in the near term for Australia.

Excerpt from the statement by Glenn Stevens, Governor:

In Australia, most data are consistent with moderate growth in the economy. Resources sector investment spending is starting to decline significantly, while some other areas of private demand are seeing expansion, at varying rates. Public spending is scheduled to be subdued. Overall, the Bank still expects growth to be a little below trend for the next several quarters.

Recent data on prices confirmed that inflation is running between 2 and 3 per cent, as expected, and this is likely to continue. Although some forward indicators of employment have been firming this year, the labour market has a degree of spare capacity and it will probably be some time yet before unemployment declines consistently. Hence, growth in wages 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 the past year or so as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise.

The exchange rate has traded at lower levels recently, in large part reflecting the strengthening US dollar. But the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices in recent months. 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 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 l Rida l rida@tradingeconomics.com
11/4/2014 10:51:34 AM


Recent Releases

Australia Maintains Cash Rate at Record Low
At its October 7th, 2014 meeting, the Reserve Bank of Australia decided to leave the cash rate unchanged at a record low of 2.5 percent, as on present conditions, the most prudent course is likely to be a period of stability in interest rate. In the Board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. Published on 2014-10-07

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. Published on 2014-09-02


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-09-16 02:30 AM
RBA Meeting's Minutes 
2014-10-07 04:30 AM
RBA Interest Rate Decision 
2.5% 2.5% 2.5% 2.5%
2014-11-04 03:30 AM
RBA Interest Rate Decision 
2.5% 2.5% 2.5% 2.5%
2014-12-02 03:30 AM
RBA Interest Rate Decision 
2.5% 2.5%


Australia Money Last Previous Highest Lowest Unit
Interest Rate 2.50 2.50 17.50 2.50 percent [+]
Interbank Rate 2.84 2.87 18.18 2.57 percent [+]
Money Supply M1 308890.00 307598.00 308890.00 8247.00 AUD Million [+]
Money Supply M3 1705346.00 1693480.00 1705346.00 10191.00 AUD Million [+]
Central Bank Balance Sheet 140894.00 134073.00 166360.00 30418.00 AUD Million [+]
Foreign Exchange Reserves 53618.00 60891.00 84610.00 1126.00 AUD Million [+]
Loans to Private Sector 1990025.00 1976743.00 1990025.00 18595.00 AUD Million [+]
Banks Balance Sheet 3449.86 3324.02 3449.86 322.96 AUD Billion [+]
Money Supply M0 86.96 86.57 88.51 4.09 AUD Billion [+]