Latest bank decision: At its meeting on 20 August, the Central Bank decided to leave its policy rate unchanged at...
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 2024.
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 cuts rates in August
Latest bank decision: At its meeting on 12 August, the Central Bank decided to cut the cash rate by 25 basis points to 3.60%. Rates have now fallen 75 basis points so far this year.
Under-control inflation drives cut: The Bank’s decision to continue its easing cycle was partly driven by the sustained decline in inflation so far this year. Moreover, the Bank expects inflation to remain within the 2.0–3.0% target range going forward, and commented that labor market conditions have recently eased, with the unemployment rate reaching a multi-year high in June.
Rate cuts to continue: The Bank’s forward guidance was open-ended. Almost all our panelists forecast more rate cuts later this year, of 25 or 50 basis points, given that inflation should remain within-target.
Panelist insight: On the outlook, EIU analysts said: “Prior to the RBA beginning its rate-cutting cycle, we suggested that it would move cautiously, and, accordingly, it has cut the OCR at every other meeting. That remains our base case, which means that we expect a hold at its meeting in late September followed by cuts in early November and in early February 2026.”
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 22 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.
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