Latest bank decision: At its August meeting, the Central Bank decided to hold the cash rate at 4.35%, following three...
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
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| RBA Cash Rate (%, eop) | 0.10 | 3.10 | 4.35 | 4.35 | 3.60 |
| 90-Day Bank Bill (%, eop) | 0.06 | 3.17 | 4.35 | 4.44 | 3.71 |
| 10-Year Bond Yield (%, eop) | 1.67 | 4.03 | 3.96 | 4.37 | 4.76 |
Central Bank holds rates in August
Latest bank decision: At its August meeting, the Central Bank decided to hold the cash rate at 4.35%, following three increases totaling 75 basis points earlier in the year.
Bank takes wait-and-see approach: The Bank’s decision reflected a desire to assess how the economy is evolving after previous tightening. While consumer spending growth is slowing gradually and labor market conditions have eased, inflation remains above the Bank’s 2.0–3.0% target, with oil and related commodity prices still elevated and short-term inflation expectations above earlier-year levels.
Further increases remain possible: The Bank said it would continue to monitor incoming data and could increase the cash rate further if upside risks to inflation materialize. Most of our panelists see the cash rate on hold at 4.35% through to end-2026, though a few panelists see another hike.
Panelist insight: On the outlook, ANZ analysts said: “Our expectation remains that the cash rate has peaked, although there is some risk of a final rate hike in November. The RBA staff are expecting trimmed mean inflation to average 0.8% q/q over Q3 and Q4, but the trend in monthly trimmed mean suggests there is a risk we see a slightly higher Q3 outcome. Given the end-point trimmed mean inflation forecast of 2.4%, there may be some tolerance on the part of the Board for a small inflation miss in Q3.”
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.
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