The Reserve Bank of Australia raised its cash rate target by 25 bps to 4.60% in a unanimous September 2026 decision, in line with expectations, marking its fourth hike this year and taking borrowing costs to their highest since 2011. Policymakers noted that higher global energy prices following oil supply disruptions amid the broader Middle East conflict, stronger-than-expected recent inflation and persistent domestic capacity constraints are adding to inflation. AI-related demand is also driving increases in global technology goods prices, while firms report rising costs and plans to pass costs on. At the same time, output growth slowed but was slightly stronger than expected in Q2, while consumer spending is easing. Housing prices fell in most capital cities and new housing loans declined, while labour market conditions have now also eased. The Board said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target. source: Reserve Bank of Australia

The benchmark interest rate in Australia was last recorded at 4.60 percent. Interest Rate in Australia averaged 3.87 percent from 1990 until 2026, reaching an all time high of 17.50 percent in January of 1990 and a record low of 0.10 percent in November of 2020. This page provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Australia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2026.

The benchmark interest rate in Australia was last recorded at 4.60 percent. Interest Rate in Australia is expected to be 4.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Interest Rate is projected to trend around 4.35 percent in 2027 and 3.85 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-06-16 04:30 AM RBA Interest Rate Decision 4.35% 4.35% 4.35% 4.35%
2026-08-11 04:30 AM RBA Interest Rate Decision 4.35% 4.35% 4.35% 4.35%
2026-09-29 04:30 AM RBA Interest Rate Decision 4.6% 4.35% 4.6% 4.6%
2026-10-13 12:30 AM RBA Meeting Minutes
2026-11-03 03:30 AM RBA Interest Rate Decision 4.6%
2026-11-17 12:30 AM RBA Meeting Minutes


Related Last Previous Unit Reference
Central Bank Balance Sheet 347574.00 356713.00 AUD Million Sep 2026
Deposit Interest Rate 3.30 3.30 percent Aug 2026
Foreign Exchange Reserves 106019.00 106651.00 AUD Million Aug 2026
Interbank Rate 4.35 4.35 percent Sep 2026
RBA Interest Rate 4.60 4.35 percent Sep 2026
Private Sector Credit YoY 8.40 8.40 percent Aug 2026
Loans to Private Sector 1452.36 1440.60 AUD Billion Aug 2026
Money Supply M0 304.92 308.00 AUD Billion Aug 2026
Money Supply M1 2004.43 2026.41 AUD Billion Aug 2026
Money Supply M3 3497.28 3511.95 AUD Billion Aug 2026


Australia Interest Rate
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.
Actual Previous Highest Lowest Dates Unit Frequency
4.60 4.35 17.50 0.10 1990 - 2026 percent Daily

News Stream
RBA Hikes Key Rate to 15-Year High
The Reserve Bank of Australia raised its cash rate target by 25 bps to 4.60% in a unanimous September 2026 decision, in line with expectations, marking its fourth hike this year and taking borrowing costs to their highest since 2011. Policymakers noted that higher global energy prices following oil supply disruptions amid the broader Middle East conflict, stronger-than-expected recent inflation and persistent domestic capacity constraints are adding to inflation. AI-related demand is also driving increases in global technology goods prices, while firms report rising costs and plans to pass costs on. At the same time, output growth slowed but was slightly stronger than expected in Q2, while consumer spending is easing. Housing prices fell in most capital cities and new housing loans declined, while labour market conditions have now also eased. The Board said further tightening may be needed to prevent inflation from becoming embedded and return it sustainably to target.
2026-09-29
Ample-Reserves Transition Still Underway: RBA Jacobs
The Reserve Bank of Australia said its shift toward an ample-reserves framework remains incomplete, with no fixed timeline for reaching equilibrium. Head of Domestic Markets David Jacobs noted in a speech that market behaviour will indicate when reserves reflect banks’ underlying demand rather than pandemic-era asset holdings. He cautioned that demand could move either way, underscoring the need for flexibility. Under the new system, the RBA will not target a specific reserve level but instead supply liquidity as required to keep the cash rate near the board’s target. Full-allotment open market operations will anchor this approach, with other tools available if repo markets falter. The central bank also confirmed that open repo is no longer necessary, as it was designed for a scarce-reserves regime. Market participants must manage liquidity more actively, drawing on both RBA facilities and private money markets to adapt to the evolving framework.
2026-08-25
RBA Flags Inflation Risks Despite Policy Hold: August Meeting Minutes
Australia’s inflation has eased from its March peak, with underlying price growth slightly lower than in late 2025, the Reserve Bank's August minutes showed. However, board members judged inflation “too high” and excess demand persistent. Meanwhile, financial conditions were seen as somewhat restrictive after earlier hikes. Staff projected inflation would only gradually return to target by late 2027, with risks skewed upward. Arguments for a 25-bp hike cited upside risks: Middle East conflict driving oil prices, firms passing costs more fully, stronger AI/data-center investment, resilient demand, and weak productivity. The case for holding steady rested on signs policy was already restrictive, inflation slightly below forecast, and unemployment rising. Downside risks included faster labor easing, weaker demand, and housing drag. Ultimately, policymakers left rates unchanged but reaffirmed readiness to act if upside risks materialise.
2026-08-25