The Reserve Bank of Australia kept its cash rates unchanged at 4.35% during its first meeting in 2024, as widely expected. Tuesday's move came after the central bank delivered a total of 425bps rate hike over the past two years to curb a post-pandemic spike in inflation. The board said cost pressure in the country continued to ease but inflation remained high as prices of services were not falling quickly enough. While warning that further monetary tightening can not be ruled out, policymakers added that the path of interest rates will depend upon the data and the evolving assessment of risks. At the same time, the central bank needs to be confident that inflation will return to the target range of 2 to 3% in 2025, and the midpoint in 2026. The committee reiterated that it will closely monitor the global economy, trends in domestic demand, and the outlook for inflation and the labor market. The board also maintained the interest rate on Exchange Settlement balances at 4.25%. source: Reserve Bank of Australia
The benchmark interest rate in Australia was last recorded at 4.35 percent. Interest Rate in Australia averaged 3.85 percent from 1990 until 2024, 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 2024.
The benchmark interest rate in Australia was last recorded at 4.35 percent. Interest Rate in Australia is expected to be 4.35 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 3.10 percent in 2025 and 2.85 percent in 2026, according to our econometric models.
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 | ||
|---|---|---|---|---|---|---|---|---|
| 4.35 | 4.35 | 17.50 | 0.10 | 1990 - 2024 | percent | Daily |
News Stream
Australia Holds Cash Rate, Signals More Hike
The Reserve Bank of Australia kept its cash rates unchanged at 4.35% during its first meeting in 2024, as widely expected. Tuesday's move came after the central bank delivered a total of 425bps rate hike over the past two years to curb a post-pandemic spike in inflation. The board said cost pressure in the country continued to ease but inflation remained high as prices of services were not falling quickly enough. While warning that further monetary tightening can not be ruled out, policymakers added that the path of interest rates will depend upon the data and the evolving assessment of risks. At the same time, the central bank needs to be confident that inflation will return to the target range of 2 to 3% in 2025, and the midpoint in 2026. The committee reiterated that it will closely monitor the global economy, trends in domestic demand, and the outlook for inflation and the labor market. The board also maintained the interest rate on Exchange Settlement balances at 4.25%.
2024-02-06
Australia Holds Cash Rate at 4.35%
The Reserve Bank of Australia maintained its cash rates at 4.35% during its final meeting of the year, as widely expected. Tuesday's move was in line with market expectations, allowing the central bank under the leadership of Governor Michele Bullock to assess the impact of previous rate hikes. Bullock last month cautioned that inflation was increasingly driven by excessive demand at home rather than supply shocks from abroad. The board said it was aware that progress in bringing inflation back to the goal of 2 to 3% was slower than earlier forecast, with underlying inflation higher than expected amid rising services costs. Policymakers reiterated that whether further tightening is needed will depend upon the data and the assessment of risks. The committee added that it will closely monitor the global economy, trends in domestic demand, and the outlook for inflation and the labor market. The central bank also kept unchanged the interest rate on Exchange Settlement balances at 4.25%.
2023-12-05
RBA Sees Upside Risks to Inflation
It was important to prevent inflation expectations in Australia from increasing significantly, given the costs of that eventuality, minutes of the Reserve Bank's meeting in November showed. Members were aware that inflation had continued to decline in the nation but underlying inflation was stronger than expected a few months earlier and, quarterly, had picked up slightly, it added. CPI inflation is now projected to be around 3-1/2% by the end of 2024 and at the top of the target range of 2 to 3% by the end of 2025. Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe would depend on how the incoming data alter the economic outlook and the evolving assessment of risks. All to say, the board is sticking with its commitment to return inflation to target. Meantime, Governor Michele Bullock said in a speech that inflation would remain a “crucial challenge” for the next “one or two years".
2023-11-21
