Latest bank decision: In early November, the Central Bank voted to keep the Bank Rate at 4.00%, following total cuts...
RBA Cash Rate in Australia
The Reserve Bank of Australia (RBA) maintained relatively low policy rates for much of the last decade. Post-financial crisis, rates saw a cycle of lowering to support GDP growth, reaching historic lows during the COVID-19 pandemic. However, monetary policy was then tightened sharply, with the policy rate rising to over 4% through end-2024, as the RBA looked to ward off inflation. In 2025, the Bank has shifted towards normalizing policy amid easing price pressures.
The rba cash rate ended 2024 at 4.35%, compared to the end-2023 value of 4.35% and the figure a decade earlier of 2.50%. It averaged 1.98% over the last decade. For more interest rate information, visit our dedicated page.
Australia Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Australia from 2014 to 2025.
Source: Macrobond.
Australia Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| RBA Cash Rate (%, eop) | 0.10 | 0.10 | 3.10 | 4.35 | 4.35 |
| 90-Day Bank Bill (%, eop) | 0.02 | 0.06 | 3.17 | 4.35 | 4.44 |
| 10-Year Bond Yield (%, eop) | 0.97 | 1.67 | 4.03 | 3.96 | 4.37 |
Central Bank leaves rates unchanged in November
Latest bank decision: At its November meeting, the Central Bank decided to leave the cash rate at 3.60%, following 75 basis points of cuts earlier in the year.
Inflation concerns motivate hold: Inflation has ticked up in recent months to above the Central Bank’s 2.0–3.0% target, and has been higher than the Bank expected. This, coupled with recovering domestic economic activity and the Bank’s desire to assess the impact of past rate cuts, likely motivated the hold.
Rate cuts to continue: The Bank’s forward guidance was open-ended. Most of our panelists anticipate further monetary easing next year as inflation pulls back, with our Consensus for a terminal cash rate of around 3% in the longer term.
Panelist insight: On the outlook, EIU analysts said: “We still expect inflation to slow in the coming quarters, owing to a combination of some temporary factors that pushed it up in mid-2025 (such as the end of electricity rebates), as well as an expected mild disinflationary impact from US trade tariffs and the impact of a softening labour market. This, we believe, will enable the RBA to resume cutting rates either in March 2026 or in the second quarter of the year. Regardless of the precise timing, we believe that the majority of the rate-cutting cycle is complete.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Australian interest rate projections for the next ten years from a panel of 21 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Australian interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Australian interest rate projections.
Want to get access to the full dataset of Australian interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
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United Kingdom: Central Bank leaves rates unchanged in November -
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Malaysia: Central Bank leaves rates unchanged in November Bank stands pat again: At its meeting on 6 November, Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy... -
Malaysia: Central Bank leaves rates unchanged in November Bank stands pat again: At its meeting on 6 November, Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy... -
Australia: Central Bank leaves rates unchanged in November Latest bank decision: At its November meeting, the Central Bank decided to leave the cash rate at 3.60%, following 75... -
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