Interest Rate in Australia
Australia - Interest Rate
RBA stands pat in December meeting
At its monetary policy meeting on 1 December, 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 reaffirmed the size and extension of its bond-buying plans.
Recent data suggests that the recovery is ongoing following Q2’s crash, and recently announced vaccines could support the recovery ahead, although possible further outbreaks of the virus continue to pose downside risks. All said, the Bank still expects the recovery to be bumpy, which led it to maintain its extremely loose monetary policy stance to help the economy. This includes the purchase of government bonds in the secondary market, in order to lower financing costs and support credit supply.
The Bank maintained a dovish tone in its communiqué, stating that it expects to maintain the cash rate at its current all-time low for at least three years, until the labor market returns to full employment and inflation rises sustainably within the 2.0%–3.0% target range. Moreover, it added that the Board could further ramp up the bond purchase program or take additional action if necessary, to ensure the 0.10% target rate for three-year government bonds is achieved.
The next monetary policy meeting is scheduled for 2 February 2021.
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: Unemployment rate at eight-month low in December
January 21, 2021
Seasonally-adjusted employment soared by 50,000 in November, following 90,000 jobs gain in November.
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Australia: Consumer sentiment dips in January
January 21, 2021
The Westpac-Melbourne Institute consumer sentiment index dropped to 107.0 in January from 112.0 in December—which had marked the highest reading since October 2010.
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Australia: Retail sales jump in November
January 11, 2021
Nominal retail sales in November soared 7.1% over the previous month in seasonally-adjusted terms, following October’s 1.4% increase. Particularly pronounced increases were recorded in household goods retailing, clothing, footwear and personal accessory retailing, department stores, cafes, restaurants and takeaway food services and other retailing. In annual terms, retail sales jumped 12.1% in November, following October’s 7.7% expansion.
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Australia: Unemployment rate drops in November
December 17, 2020
Seasonally-adjusted employment soared by 90,000 in November, following revised 180,400 jobs gain in October (previously reported: +178,800).
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Australia: Business confidence at highest level in close to three years in November
December 11, 2020
The business confidence index produced by National Australia Bank (NAB) soared from 3.2 points in October to 12.4 points in November, marking the highest reading since April 2018.
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