The Reserve Bank of Australia unanimously raised the cash rate by 25bps to 3.85% at its first policy meeting of 2026, in line with market expectations. The decision marked the first rate hike since November 2023, underscoring renewed cost pressures that intensified in H2 2025 amid elevated service expenses and a tight labor market, effectively reversing one of last year’s three cuts. The central bank viewed that inflation is likely to remain above the 2–3% target band for some time, reflecting stronger economic momentum and a healthy job market. The board added that further policy moves will depend on incoming economic data and its evolving assessment of the outlook and risks, including the balance between curbing inflation and sustaining economic growth. While acknowledging progress made in easing inflation over the past year, policymakers stressed that maintaining price stability remains their primary focus, signaling a cautious but data-dependent approach to future tightening. source: Reserve Bank of Australia

The benchmark interest rate in Australia was last recorded at 3.85 percent. Interest Rate in Australia averaged 3.86 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 February of 2026.

The benchmark interest rate in Australia was last recorded at 3.85 percent. Interest Rate in Australia is expected to be 3.85 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 3.60 percent in 2027 and 3.10 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-11-04 03:30 AM RBA Interest Rate Decision 3.6% 3.6% 3.6% 3.6%
2025-12-09 03:30 AM RBA Interest Rate Decision 3.6% 3.6% 3.6% 3.6%
2026-02-03 03:30 AM RBA Interest Rate Decision 3.85% 3.6% 3.85% 3.85%
2026-03-05 12:00 AM RBA Payments System Board Meeting
2026-03-17 03:30 AM RBA Interest Rate Decision
2026-05-05 04:30 AM RBA Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 366221.00 369370.00 AUD Million Feb 2026
Deposit Interest Rate 2.85 2.85 percent Jan 2026
Foreign Exchange Reserves 104725.00 112452.00 AUD Million Jan 2026
Interbank Rate 3.60 3.60 percent Jan 2026
RBA Interest Rate 3.85 3.60 percent Feb 2026
Private Sector Credit YoY 7.70 7.40 percent Dec 2025
Loans to Private Sector 1354.81 1344.79 AUD Billion Dec 2025
Money Supply M0 315.00 325.43 AUD Billion Dec 2025
Money Supply M1 1952.98 1937.08 AUD Billion Dec 2025
Money Supply M3 3350.20 3333.09 AUD Billion Dec 2025


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
3.85 3.60 17.50 0.10 1990 - 2026 percent Daily

News Stream
RBA Leans Hawkish Amid Persistent Inflation: February Minutes
Australia’s inflation picked up in H2 2025 and was “too high,” according to the Reserve Bank’s February meeting minutes. While much of the rise in underlying inflation was seen as temporary, members judged some of it reflected persistent pressures. As a result, the central inflation forecast was revised materially higher, with inflation projected to stay above target through 2026 and only return close to the midpoint around mid-2028, assuming the cash rate follows the market path. Model estimates suggested spare capacity had narrowed, with aggregate demand exceeding supply and the labour market staying a bit tight. Solid output growth, resilient global conditions, and still-elevated unit labour costs reinforced capacity pressures. Members also worried that financial conditions were no longer restrictive enough. Overall, they agreed there was a stronger case to raise the cash rate by 25bps, as inflation risks had increased and downside risks to full employment had eased.
2026-02-17
RBA Signals Inflation Battle Ongoing
Australia’s battle against inflation is far from over, the Reserve Bank Chief Economist Sarah Hunter warned in a speech, noting that returning price growth to target will take “some time” and may require further rate hikes. She highlighted that demand has recently grown faster than trend while the economy is already near capacity, adding, “We expect the labor market will remain tight and inflation will remain above target for some time.” Meanwhile, Governor Michele Bullock, speaking at a Senate hearing, stressed that strong private demand, rather than fiscal policy, remains the main challenge. She emphasized the central bank stands ready to raise rates again if inflation proves persistent, as renewed price pressures since late 2025 continue to weigh on the outlook.
2026-02-12
RBA Signals Further Action to Bring Down Inflation
The Reserve Bank of Australia indicated it will take further action to curb inflation, which Deputy Governor Andrew Hauser said remains “too high.” Speaking at a business luncheon Wednesday, Hauser stressed the central bank will “continue to do whatever is necessary” to return inflation to its 2–3% target band. The RBA raised the official cash rate by 25bps last week, reversing an August cut after inflation overshot forecasts. Both headline and core inflation are now above target, with projections showing inflation may not fall back within the band until mid-2027. Hauser said the shift from easing to tightening reflects changing conditions, including a stronger-than-expected global economy and a solid rebound in domestic private demand. He emphasized that the bank’s actions are not about favoring special interests but about easing the burden on households by restoring price stability.
2026-02-11