Interest Rate in Australia
Australia - Interest Rate
RBA stands pat in October
At its monetary policy meeting on 5 October, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at the all-time low of 0.10%. It also left the target for three-year government bond yields at around 0.10%, and stated it will continue purchasing government bonds at the rate of AUD 4 billion a week until at least mid-February next year in order to maintain accommodative financing conditions.
The decision was underpinned by the will to support the recovery, following a likely downturn in the third quarter due to the Delta outbreak and the associated reinstatement of containment measures. Moreover, the Bank judged that wage and price pressures were still subdued. The Bank expects growth to resume in the fourth quarter, although much depends on when restrictions are eased.
The Bank maintained a dovish stance in its communiqué, stating that it is “committed to maintaining highly supportive monetary conditions to achieve a return to full employment”. Moreover, it ruled out hiking the cash rate before inflation establishes itself within the 2.0%–3.0% target range sustainably, which it does not expect to happen before 2024. As such, all of our panelists see the cash rate remaining at 0.10% for the rest of this year.
The next monetary policy meeting is scheduled for 2 November.
FocusEconomics panelists forecast the cash rate to end 2021 at 0.10% and 2022 at 0.12%.
Australia - Interest Rate Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | 2.00 | 1.50 | 1.50 | 1.50 | 0.75 |
Australia Interest Rate Chart
Source: Reserve Bank of Australia.
Australia Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 1.37 | 1.47 % | Dec 31 |
| Exchange Rate | 0.70 | 0.05 % | Dec 31 |
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Economic News
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Australia: Lockdowns hit Australia’s labor market in September
October 14, 2021
Seasonally-adjusted employment fell by a sharp 138,000 in September, following 146,300 jobs shred in August.
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Australia: Business confidence improves in September
October 14, 2021
The business confidence index produced by National Australia Bank (NAB) improved to plus 13.0 points in September from minus 5.5 points in August.
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Australia: Consumer sentiment weakens in October
October 14, 2021
The Westpac-Melbourne Institute consumer sentiment index dropped to 104.6 in October from 106.2 in September.
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Australia: RBA stands pat in October
October 6, 2021
At its monetary policy meeting on 5 October, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at the all-time low of 0.10%.
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Australia: Retail sales drop at softer pace in August
October 5, 2021
Retail sales fell 1.7% in month-on-month seasonally-adjusted terms in August, which followed July's 2.7% decrease, which had marked the worst reading since December 2020.
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