Australia official Interest Rate

Cash rate target

When reference is made to the Australian interest rate this often refers to the cash rate target, also
called the official cash rate (OCR) or cash rate. This is the Australian base rate. Banks pay this interest
rate when they take out a loan with a maturity of 1 day from another bank. By buying or selling bonds
and other securities issued by the government the RBA can influence the money supply and thus the
cash rate target. A rise or fall in the cash rate often also leads to a change in the interest rates for
mortgages, loans and savings.

Reserve Bank of Australia

The Reserve Bank of Australia (RBA) is the Australian central bank. The RBA’s most important task is to
set the monetary policy for Australia. The aim of this policy is to achieve low and stable inflation in the
medium term. Other important responsibilities of the RBA are:

 to maintain financial stability and the stability of the Australian dollar;

 to maintain full employment;
 to contribute to the economic development and wealth of the inhabitants of Australia;
 to act as banker for the Australian government;
 to issue Australian currency;
 to manage Australia’s foreign currency reserves.

The Reserve Bank of Australia lowered its cash rate by 25 bps to a new record low of 0.75 percent during
its September meeting, the third rate cut this year, aiming to support employment and income growth
and to provide greater confidence that inflation will be consistent with the medium-term target.
Policymakers also signalled the need for an extended period of low interest rates, while saying the
central bank is prepared to ease monetary policy further if needed. Interest Rate in Australia averaged
4.25 percent from 1990 until 2019, reaching an all time high of 17.50 percent in January of 1990 and a
record low of 0.75 percent in October of 2019.

Australia Holds Cash Rate Steady at 1%

The Reserve Bank of Australia left the cash rate unchanged at a record low of 1 percent during its
September meeting, as widely expected. Policymakers said that it is reasonable to expect that an
extended period of low interest rates will be required to make progress in reducing unemployment and
achieve progress towards the inflation target. The Committee added that they will continue to monitor
the effects of the two consecut ive rate cuts in June and July and developments in the labour market
Australia Interest Rate
In Australia, interest rates decisions are taken by the Reserve Bank of Australia's Board. The official
interest rate is the cash rate. The cash rate is the rate charged on overnight loans between financial
intermediaries, is determined in the money market as a result of the interaction of demand for and
supply of overnight funds. This page provides - Australia Interest Rate - actual values, historical data,
forecast, chart, statistics, economic calendar and news. Australia Interest Rate - actual data, historical
chart and calendar of releases - was last updated on October of 2019.

Actual Previous Highest Lowest Dates Unit Frequency

0.75 1.00 17.50 0.75 1990-2019 percent daily

Interest Rate in Australia is expected to be 0.75 percent by the end of this quarter, according to Trading
Economics global macro models and analysts expectations. ... In the long-term, the Australia Interest
Rate is projected to trend around 0.75 percent in 2020, according to our econometric models.