The Australian Economy and

Financial Markets
Chart Pack | June 2022
The Australian Economy and Financial Markets
Contents
World Economy 1
Australian Growth 4
Australian Inlation 5
Household Sector 6
Business Sector 8
Credit and Money 11
Factors of Production and Labour Market 12
Regions and Industry 14
Government 15
Commodity Prices 16
Balance of Payments and External Position 17
Central Bank Balance Sheets and Bond Purchases 19
Interest Rates 20
Share Markets 25
Bond Issuance 26
Exchange Rates 28
The Australian Economy and Financial Markets 30
© Reserve Bank of Australia 2022

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World Economy
GDP Growth – World GDP Growth – China and India
Year-ended Year-ended
% % % %

20 20
10 10
Major trading partners* China
10 10
5 5
India
0 0
World**
0 0
-10 -10

-5 -5
-20 -20

-10 -10 -30 -30

2005 2009 2013 2017 2021 2006 2010 2014 2018 2022
* Weighted using Australian export shares. Sources: CEIC Data; RBA
** PPP-weighted; accounts for 85 per cent of world GDP.
Sources: ABS; CEIC Data; IMF; RBA; Refinitiv

GDP Growth – Advanced Economies GDP Growth – East Asia

Year-ended Year-ended
% % % %

10 10 12 12
Japan Indonesia
US Euro area
5 5 6 6

South Korea
0 0 0 0

Malaysia
-5 -5 -6 -6

-10 -10 -12 -12

-15 -15 -18 -18

2002 2006 2010 2014 2018 2022 2002 2006 2010 2014 2018 2022
Source: Refinitiv Sources: CEIC Data; RBA

C H A R T PA C K | J U N E 2 0 2 2 1
 W O R L D E CO N O M Y

Inflation – Advanced Economies* Inflation – China and India

Year-ended Year-ended
% % % %
India
7.5 7.5
15 15

5.0 5.0
US
10 10
Euro area
2.5 2.5
5 5
0.0 0.0
Japan
0 0
-2.5 -2.5
China
-5.0 -5.0 -5 -5
2006 2010 2014 2018 2022 2002 2006 2010 2014 2018 2022
* Personal consumption expenditure (PCE) inflation for the US; Japan Source: CEIC Data
data excludes the effects of the consumption tax increase in April 2014.
Sources: RBA; Refinitiv

Labour Markets – Advanced Economies Inflation – East Asia

% Unemployment rate % Year-ended
12 12 % %
Euro area Indonesia
8 8
15 15
US
4 4

10 10
% Wages growth* %
Year-ended

5 5 5 5

0 0
Japan 0 0
Malaysia South Korea
-5 -5
2010 2014 2018 2022
-5 -5
* Average hourly earnings for the US; compensation per employee for 2002 2006 2010 2014 2018 2022
the euro area; smoothed full-time base wages for Japan.
Sources: CEIC Data; RBA; Refinitiv Sources: CEIC Data; RBA; Refinitiv

C H A R T PA C K | J U N E 2 0 2 2 2
 W O R L D E CO N O M Y

China – Activity Indicators China – Residential Property Indicators

Year-ended growth % New property prices growth* Investment growth* %
index Manufacturing PMI* Industrial production %
Alternative**
70 40 15 30
Land purchases
60 20
0 0
50 0 Official Construction
and other*** Total
40 -20
index Floor space sold Floor space started index
% % Dec 2019 = 100 Dec 2019 = 100
Fixed asset investment Real retail sales 130 130
40 20
20 10 100 100

0 0 70 70
-20 -10
40 40
-40 -20 2014 2018 2022 2018 2022
2010 2016 2022 2010 2016 2022 * Year-ended.
* ** China Index Academy.
Diffusion index; average of the official and Caixin.
*** Construction, installation, equipment purchases and other.
Sources: CEIC Data; Markit Economics; RBA
Sources: CEIC Data; CIA; RBA

China – Total Social Financing Growth China – Gross Output of Selected Products*
Year-ended with contributions 2006 average = 100
% % index index

300 300
30 30
Electricity generation Steel products
Household loans
Business financing*
250 250
Government bonds**
Plate glass
20 20 200 200

Crude steel
150 150
10 10 Cement

100 100

0 0
2010 2014 2018 2022 50 50
* 2010 2016 2022 2010 2016 2022
Sum of business loans, securities financing and off-balance sheet
financing. * Seasonally adjusted by the RBA.
** Net government bond issuance includes local government bond Sources: CEIC Data; RBA
issuance to pay off debt previously classified as business financing,
and uses RBA estimates prior to 2016.
Sources: CEIC Data; RBA

C H A R T PA C K | J U N E 2 0 2 2 3
Australian Growth
GDP Growth Contributions to GDP Growth
% % Year-ended
ppt ppt
March 2022

8 8 3 3
Year-ended
4 4 2 2

1 1
0 0
Quarterly
0 0
-4 -4
-1 -1

-8 -8
1997 2002 2007 2012 2017 2022 -2 -2

GDP

Consumption

investment

investment

Non-mining

Government

Exports

Imports
investment
Dwelling
Source: ABS

Mining
Sources: ABS; RBA

Mining and Non-mining Activity State Final Demand

Year-ended growth, RBA estimates Year-ended growth
% Mining* % % %
Mining investment WA
20 20
Resource exports 15 15
10 10
10 10
0 0
5 5
% Non-mining %
10 10 0 0
NSW and Vic
5 5 Rest of Australia
-5 -5
0 0
-10 -10
-5 -5
-10 -10 -15 -15
2006 2010 2014 2018 2022 2002 2007 2012 2017 2022
* Net of mining-related imports; components are contributions to Sources: ABS; RBA
year-ended mining activity growth; contribution from changes in
inventories not shown.
Sources: ABS; RBA

C H A R T PA C K | J U N E 2 0 2 2 4
Australian Inflation
Consumer Price Inflation* Measures of Underlying Inflation*
% % Year-ended
% %
5 5
Year-ended Weighted median
4 4 5 5
Trimmed mean
3 3 4 4

2 2
3 3
1 1

0 0 2 2
Quarterly
(seasonally adjusted)
CPI excl volatile items
-1 -1 1 1

-2 -2
1997 2002 2007 2012 2017 2022 0 0
* Exclude intere t charge prior to the September quarter 1

8; 1997 2002 2007 2012 2017 2022
adu ted for the tax change of 1


Ð000. * Excludes interest charges prior to September 1998 and deposit & loan
Source : ABS; RBA facilities prior to September 2011; adjusted for 1999–2000 tax changes.
Sources: ABS; RBA

Tradable and Non-tradable Inflation*

% Non-tradables** %

4 4
Year-ended
2 2

0 0
Quarterly
(seasonally adjusted)
% Tradables excl volatiles %

4 4

2 2

0 0

-2 -2
1997 2002 2007 2012 2017 2022
* Adjusted for the tax changes of 1999–2000.
** Excludes interest charges and indirect deposit & loan facilities.
Sources: ABS; RBA

C H A R T PA C K | J U N E 2 0 2 2 5
Household Sector
Household Income and Consumption* C onsuer Sentient*
% Real, year-ended growth % Average since 1980 = 100
Consumption index index
8 8

0 0
Disposable income
-8 -8
100 100

% Saving ratio %

16 16

8 8 85 85

0 0

-8 -8
1992 1998 2004 2010 2016 2022 70 70
* Household sector includes unincorporated enterprises; disposable 2010 2014 2018 2022
income is after tax and interest payments; saving ratio is net of * Average of the ANZ-Roy Morgan and Westpac-Melbourne Institute
depreciation.
consumer sentiment measure of respondents’ perceptions of their
Sources: ABS; RBA personal finances relative to the previous year; ANZ-Roy Morgan
index rescaled to have the same average as the Westpac-Melbourne
Institute index since 1996.
Sources: ANZ-Roy Morgan; RBA; Westpac and Melbourne Institute

Private Dwelling Investment* Private Residential Building Approvals

Chain volume, quarterly Monthly
$b $b ’000 ’000

20 20
24 24 Detached houses
Total
16 16

18 18 12 12

8 8
12 12
4 4

Higher-density housing
6 6 0 0
1992 1998 2004 2010 2016 2022 1992 1997 2002 2007 2012 2017 2022
* Reference year is 2019/20. Source: ABS
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 6
 H O U S E H O L D S E C TO R

Housing Prices and Household Debt* Household Wealth and Liabilities*

Ratio to household disposable income Per cent of annual household disposable income
ratio ratio % %
Housing prices Household debt

800 800
5 2.0
Net wealth

600 600
4 1.5 Dwellings

400 400

3 1.0
Financial assets
200 200

Liabilities
2 0.5 0 0
1992 2007 2022 1992 2007 2022 1996 2001 2006 2011 2016 2021
* Household disposable income is after tax, before the deduction of * Household disposable income is after tax, before the deduction of
interest payments, and includes income of unincorporated enterprises. interest payments, and includes income of unincorporated enterprises.
Sources: ABS; CoreLogic; RBA Sources: ABS; RBA

Housing Prices Housing Loan Commitments*

Year-ended growth, seasonally adjusted Excluding refinancing
% % $b $b

20 20 30 30
ABS* Total
15 15 25 25
APM*** Owner-occupier
10 10 20 20

5 5 15 15
Residex*
0 0 10 10

-5 -5 5 5
CoreLogic**
Investor
-10 -10
2010 2014 2018 2022 0 0
2006 2010 2014 2018 2022
* ABS is a quarterly stratified median price index; Residex is a quarterly
* Seasonally adjusted.
repeat sales price index.
** Monthly hedonic price index; non-seasonally adjusted. Sources: ABS; RBA
*** Quarterly stratified median price index.
Sources: ABS; APM; CoreLogic; RBA; Residex

C H A R T PA C K | J U N E 2 0 2 2 7
Business Sector
Business Investment* Capital Expenditure – Mining and Non-mining*
Sare o no
nal GDP Nominal, log scale
% % $b $b
Mining Non-mining
128 128
18 18
64 64

16 16 32 32

16 16
14 14

8 8
1 1
4 4

10 10 2 2
1 18 004 010 016 0 94 / 95 08 / 09 22 / 23 94 / 95 08 / 09 22 / 23
* * Dots are firms’ expectations for 2021/22 and 2022/23; adjusted for
Aduted or econd-and aet tran er etween te rvate and
oter ector. historical differences between expected and realised spending.
Source: ABS Sources: ABS; RBA

Business Investment Components* Industry Share of Business Investment*

Share of nominal GDP % %
% %
50 50
Machinery and equipment
8 8 Manufacturing Mining
40 40
Financial and Retail and
6 6 insurance services wholesale trade
30 30
Other business
services** Construction
4 4 20 20
Buildings
Agriculture
10 10
2 2
Engineering
0 0
0 0 90 / 91 95 / 96 00 / 01 05 / 06 10 / 11 15 / 16 20 / 21
1992 1998 2004 2010 2016 2022 * Nominal; includes second hand asset transfers.
* Adjusted for second-hand asset transfers between the private and ** Includes: information media and telecommunications; rental, hiring
other sectors. and real estate services; professional, scientific and technical services;
Source: ABS administrative and support services.
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 8
 B U S I N E S S S E C TO R

Private Non-financial Corporation Profits* NAB Business Survey

Share of nominal GDP ppt Business conditions* ppt
% % 20 20

0 0
16 16
Non-mining -20 -20

12 12 -40 -40

ppt Business confidence* ppt

8 8
Mining 0 0

4 4 -30 -30

-60 -60
0 0
2002 2007 2012 2017 2022
* Gross operating profits; inventory valuation adjusted. % Capacity utilisation %
Sources: ABS; RBA
84 84

80 80
Lending to Business* Average since 1989
76 76
Break-adjusted
$b $b 72 72
Exposures data EFS data

68 68
1992 1998 2004 2010 2016 2022
600 600
* Net balance; deviation from average since 1989.
Sources: NAB; RBA

400 400

Large business

200 200
Medium business
Small business

0 0
2010 2014 2018 2022 2020 2022
* Exposures data capture credit exposures on the balance sheets of
banks allowed by APRA to use an internal ratings-based approach
for credit risk management; EFS data are based on reporting of banks
and finance companies that have $2 billion or more of business credit.
Sources: APRA; RBA

C H A R T PA C K | J U N E 2 0 2 2 9
 B U S I N E S S S E C TO R

Business Lending Rates Lending to Businesses

Average interest rate on credit outstanding Not seasonally adjusted, break-adjusted
% % $b $b
Small business Medium business Large business Small business Medium business Large business

600 600
6 6
Fixed-rate

450 450
4 4
Secured by
residential 300 300
property*
Variable-rate
2 2
150 150

0 0 0 0
2020 2022 2020 2022 2020 2022 2020 2022 2020 2022 2020 2022
* Small business loans secured by residential property can have fixed Secured (other) Unsecured
or variable interest rate terms and are included in the fixed-rate and Secured (residential property) Secured
variable-rate lines
Sources: APRA; RBA
Sources: APRA; RBA

Business Loan Commitments* Lending to Selected Industries

Small and medium-sized businesses, excluding refinancing Small and medium-sized businesses, credit outstanding
$b $b
$b Other** Purchase of property
$b Highly affected by COVID-19* Less affected by COVID-19*
Working capital Construction Rental
Plant and equipment
12 12
80 80

9 9 Agriculture
Other highly
Total affected** Other services***

6 6 40 40

Accom & food

Construction
Healthcare
3 3 Admin

0 0
2020 2022 2020 2022
0 0 * Highly affected industries had the highest share of businesses report a
S D M J S D M J S D M J fall in revenue of greater than 50 per cent in a June 2020 ABS survey;
2019 2020 2021 2022 less affected industries are the top four by value of SME lending.
** Education & training; arts & recreation; information media & telecoms.
* Fixed-term loans; not seasonally adjusted. *** Other services includes a broad range of personal services, selected
** Wholesale finance, acquisitions and general business purposes. repair and maintenance activities and households employing staff.
Sources: APRA; RBA Sources: APRA; RBA

C H A R T PA C K | J U N E 2 0 2 2 10
Credit and Money
Credit and Broad Money Growth Credit Growth
% %
Year-ended Oner-occupier Investor housing Business
% % housing
Broad oney
7 7
1 1
6-month-ended
annualised
0 0
10 10

redt % 3-month-ended %
  average
Monthly
0.8 0.8

0.0 0.0
0 0
1 00 00 01 01 0 -0.8 -0.8
Source: ABS AA BA 2016 2019 2022 2019 2022 2019 2022
Sources: ARA; RBA

Monetary Aggregates Growth Credit Growth by Sector

Year-ended Year-ended
% % % %
M3 Housing
20 20 20 20

15 15 10 10

Business
10 10 0 0
Personal

5 5 -10 -10
Currency

0 0 -20 -20
1997 2002 2007 2012 2017 2022 2002 2006 2010 2014 2018 2022
Sources: APRA; RBA Sources: ABS; APA; BA

C H A R T PA C K | J U N E 2 0 2 2 11
Factors of Production and Labour Market
Factors of Production Wage Price Index Growth*
Annual growth % %
% Net capital stock* %

5 5 4 4

3 3 3 3
Year-ended

% Working-age population %
2 2

2 2 Quarterly
1 1
1 1

0 0
0 0 2002 2007 2012 2017 2022
85 / 86 92 / 93 99 / 00 06 / 07 13 / 14 20 / 21 * Total pay excluding bonuses.
* Excluding livestock & orchards, dwellings and ownership transfer costs. Source: ABS
Sources: ABS; RBA

Capital &atio'* Unit Labour Costs Growth

"!"/80 = 00 Non-farm, year-ended
inde$ inde$ % Unit labour costs %
15 15
200 200 10 10
*apital+labour ratio 5 5
!# !# 0 0
-5 -5
#0 #0 % %
Average earnings per hour
10 10
2# 2# 5 5
*apital+output ratio
0 0
00 00 Labour productivity per hour
-5 -5

!# !# -10 -10
8# / 86 "2 / "3 "" / 00 06 / 0! 13 / 4 20 / 2 1997 2002 2007 2012 2017 2022
* ,apital stock e-cludes livestock . orchards0 dwellings and ownership Sources: ABS; RBA
transfer costs.
Sources: ABS; 4BA

C H A R T PA C K | J U N E 2 0 2 2 12
 FA C TO R S O F P R O D U C T I O N A N D L A B O U R M A R K E T

Employment and Participation Rates Employment and Hours Worked*

% % 2008 average = 100
Participation rate index index

64 64 120 120

Employment
110 110
61 61

Total hours worked

100 100
58 58 Average hours worked
Employment to working-age population ratio 90 90

55 55
1997 2002 2007 2012 2017 2022 80 80
Source: ABS 2010 2014 2018 2022
* Seasonally adjusted.
Sources: ABS; RBA

Labour Underutilisation Rates Job Vacancies and Advertisements

Heads-based Per cent of labour force
% % % %

12 12 3 3
Advertisements
Vacancies*
(NSC)
(ABS survey)
9 9 2 2
Underemployment rate*

6 6 1 1
Advertisements
(ANZ survey)
Unemployment rate

3 3 0 0
1997 2002 2007 2012 2017 2022 2010 2014 2018 2022
* Full-time workers on reduced hours for economic reasons and * This survey was suspended between May 2008 and November 2009.
part-time workers who would like, and are available, to work more Sources: ABS; ANZ; National Skills Commission (NSC); RBA
hours.
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 13
Regions and Industry
St@te Sh@re of OutAut State Unemployment Rates*
NoBFnal Seasonally adMusted
% % X X
South Australia
NeL SoutI WaleJ Zueensland
38 38 8 8
]asmania
30 30 [ictoria
7 7
VFctorFa
?8 ?8
6 6
?0 ?0
QueenJland U U
18 18 Western Australia
WeJtern AuJtralFa S S
10 10 Ne\ South Wales
SoutI AuJtralFa
3 3
8 8
KaJBanFa

0 0 2 2
>0 : >1 >8 : >< 00 : 01 08 : 0 < 10 : 11 18 : 1< ?0 : ?1 201S 2018 2022 2018 2022
* ^he trend series have been suspended from April 2020 until more
Source: ABS
certainty emerges in the underlying trend in labour mar_et activity
over the `cdIe-19 period.
Source: ABS

Industry Share of Output* Employment Growth by Industry*

% % Cumulative change since March 2013
rther business services** ’000 ’000

Manufacturing
14 14 900 900
Retail and wholesale
Business
trade
services
600 600
Household
10 10 services Public
tinancial and insurance services administration
300 300
oonstruction Construction
Other**
6 6
Mining 0 0
Retail and Mining Manufacturing
Agriculture wholesale trade
2 2 -300 -300
n0 l n1 n 5 l n6 00 l 01 05 l 06 10 l 11 15 l 16 20 l 21 2013 2017 2021 2017 2021
* Nominal gross value added. * The trend series have been suspended from June 2020 until more
** yncludes: information media and telecommunications; rental, hiring certainty emerges in the underlying trend in labour market activity
and real estate services; professional, scientific and technical services; over the COVID-19 period.
administrative and support services. ** Includes agriculture, forestry & fishing; transport, postal & warehousing;
and electricity, gas, water & waste services.
Source: ABS
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 14
Government
{|} tr~€~n Goern‚ent ƒ|„get ƒ~~nce* State Budget Balances*
Per cent of nominal GDP ‰er cent of nominal Š‹‰
% % ˆ ˆ

1.0 1.0
2 2
0.‡ 0.‡
0 0
0.0 0.0

-2 -2 -0.‡ -0.‡

-1.0 -1.0
-4 -4
-1.‡ -1.‡
-6 -6
-2.0 -2.0

-8 -8 -2.‡ -2.‡
89 / 90 98 / 99 07 / 08 1z / 17 25 / 26 8‡ … 86 92 … 93 99 … 00 06 … 07 13 … 1† 20 … 21
* Underlying cash balance; 2022/23 Budget. * Œnderlying cash balance.
Source: Australian Treasury Source: ABS

Public Construction Work Done Taxation Revenue Growth

Per cent of nominal GDP Nominal, year-ended with contributions
% % % Total Corporate income tax* Other %
Total Household income tax GST
20 20

3 3
15 15

10 10
2 2
5 5
Engineering
0 0
1 1

-5 -5
Building
0 0 -10 -10
1992 1998 2004 2010 2016 2022 2006 2010 2014 2018 2022
Source: ABS * Only includes taxation of resident corporations.
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 15
Commodity Prices
RBA Index of Commodity Prices — il and ˜N™ šri›eœ
SD’“ 2020/2 a”erage • 00“ log scale Monthly
inde‘ inde‘ US$/b US$/
0 0 MMBtu
2 2
150 30
00 00 Brent oil
(LHS)
Japan and Korea LNG spot
  (RHS)
100 20

0 0

50 10

2 2 0 0
ŽŽ2 ŽŽ8 2004 200 206 2022 2012 2014 2016 2018 2020 2022
Source: –BA Sources: Bloomberg; RBA; Refinitiv

Bul žŸ  Ÿd¡t¢ Prices Terms of Trade*

£ree on board basis 2019©20 average ª 100« log scale
US$/t ¤ron ore Thermal coal Coking coal US$/t index index
¥¦HS) (LHS) (RHS)
120 120

300 450
100 100
Average
Australian
export price Spot price* §0 §0
200 300

¨0 ¨0
100 150

0 0 40 40
2015 2022 2015 2022 2015 2022 19¨2 19§2 2002 2022
* Iron ore 62% Fe fines index; Newcastle thermal coal and premium * Annual data are used prior to 19¬0.
hard coking coal.
Sources: ABS; RBA
Sources: ABS; Bloomberg; McCloskey by OPIS; RBA

C H A R T PA C K | J U N E 2 0 2 2 16
Balance of Payments and External Position
Export Volumes Resource Exports*
Log scale, quarterly ­og scale® ¯uarterly
$b $b Mt Mt

Resources Services
­N²

40 16 200 12

Rural
Iron ore

20 8 100 6

Manufacturing
±oal

10 4 °0 3
2002 2012 2022 2002 2012 2022 2010 2016 2022 2010 2016 2022
Sources: ABS; RBA * Seasonally ad³usted by the RBA.
Sources: ABS; ´epartment of Industryµ Scienceµ ¶nergy and Resources;
RBA

Import Volumes EÂÃorÄÅ ÆÇ ÈeÅÄÉnaÄÉon

Log ·cale, ¸uarterl¹ AnnualÊ share of total values
$º $º % %

¾nter»ediate
32 32
Á0 Á0
Con·u»¼tion
Ìhina
16 16

Ser½ice· 20 20
Ëapan
8 8
Ca¼ital ÍS
10 10
4 4 EÍ-27* South Ïorea

Îndia ÍÏ
2 2 0 0
2002 2012 2022 2002 2012 2022 2000 2004 200À 2012 201¿ 2020
Source: ABS * The series has been revised to exclude the ÑÒ.
Sources: ABS; RBA

C H A R T PA C K | J U N E 2 0 2 2 17
 B A L A N C E O F PAY M E N T S A N D E X T E R N A L P O S I T I O N

Current Account Balance Net Capital Inflow*

Per cent of nominal GDP
% %
6 6
Trade balance
3 3
Net income balance
Per cent of nominal GDP
% %
DeÕt
8 8
6 6
Öotal
4 4

0 0 2 2

0 0
-3 -3 ÓÔuity
-2 -2
-6 -6
-4 -4
Current account balance
-9 -9 -6 -6
1992 1998 2004 2010 2016 2022 2002 2006 2010 2014 2018 2022
Source: ABS * ×atest year includes data for tØe year to date.
Source: ABS

Net Foreign Liabilities External Position*

By type, per cent of nominal GDP Composition after hedÙinÙÚ Ûuarterly
% % $b $b
Üross foreiÙn liabilities Gross foreign assets
Total
60 60
4,000 4,000
Foreign currency
45 45
Australian dollar
Long-term debt* 3Ú000 3,000
30 30
Short-term debt*
15 15 2Ú000 2,000

0 0
Equity
1Ú000 1,000
-15 -15

-30 -30 0 0
2002 2006 2010 2014 2018 2022 2008 2015 2022 2008 2015 2022
* * Hedge ratios inferred from ABS Foreign Currency Exposure surveys.
Short-term includes debt with residual maturity of one year or less;
long-term includes all other debt. Sources: ABS; RBA
Source: ABS

C H A R T PA C K | J U N E 2 0 2 2 18
Central Bank Balance Sheets and Bond Purchases
RBA Assets ÝÞß Liabilities
$b $b äb äb
Financial year Weekly àinancial year Weeåly
600 600 600 600

500 500 ã00 ã00

400 400 á00 á00

300 300 300 300

200 200 200 200

100 100 100 100

0 0 0 0

-100 -100 -100 -100

14/15 16/17 18/19 20/21 S D M 1áâ1ã 16â17 18â19 20â21 S æ M
2021 2022 2021 2022
Open repo & other assets Domestic bonds çapital è Reserve Bané Reserve êund ìovernment è other deposits
OMO repo Gold & foreign exchange Banénotes íther liabilities
Term Funding Facility ëxchange Settlement balances
Source: RBA Source: RBA

Central Bank Total Assets Ceîtraï ðaîk ñoòerîóeît ðoîd Holdings

Per cent of GDP ôer cent of eligible stocõ outstanding*
% %
% %
ø0 ø0
150 30
úapan
ùû Sweden
40 40
125 25 NZ
Japan
Sweden ÷0 ÷0
100 20
Euro area** ùS
20 20
75 15 Canada
Euro area NZ
10 10
50 10
Australia
UK Australia
0 0
25 5 201ö 2020 2022 201ö 2020 2022
Canada
US * Data include nominal and inflation-linked bonds issued by central
governments that are eligible for purchase in the secondary market
0 0 under central banks’ government bond purchase programs (for
2018 2020 2022 2018 2020 2022 Australia, this is nominal Australian Government Securities only); data
for euro area also include eligible bonds issued by local and regional
Sources: Central banks; RBA; Refinitiv
governments.
** Holdings data for euro area only include bonds held as part of asset
purchase programs; holdings data for other central banks also include
bonds held for operational or liquidity purposes.
Sources: Central banks; debt management offices; RBA; Refinitiv

C H A R T PA C K | J U N E 2 0 2 2 19
Interest Rates
Australian Cash Rate Target
% %
ý ý
ÿ olicy Interest Rates
% %
US
5 5

6 6
4 4
þ þ
3 3
4 4 Euro area*
2 2
3 3
1 1
2 2

ü ü 0 0
Japan
0 0 -1 -1
ü99ý 2002 200ý 20ü2 20üý 2022 2006 2010 2014 2018 2022
Source: RBA * Main refinancing rate until the introduction of 3-year LTROs in
December 2011; deposit facility rate thereafter.
Source: Central banks

Australian Cash Rate and 90-da Bill Yield Policy Interest Rates – Selected
% %
Advanced Economies
8 8 % %
Cash rate NZ
target 8 8
6 6
90-day bill yield

4 4 6 UK 6

2 2
4 4
Real cash rate*
0 0
2 2
Sweden
-2 -2 Canada
0 0
-4 -4
1997 2002 2007 2012 2017 2022 Switzerland
* -2 -2
Calculated using average of year-ended weighted median inflation
2006 2010 2014 2018 2022
and year-ended trimmed mean inflation.
Sources: ABS; AFMA; ASX; RBA Source: Central banks

C H A R T PA C K | J U N E 2 0 2 2 20
 I N T E R E S T R AT E S

Monetary Poli
y Ð China 10-year Australian Government Bond Yield

% Interest rates % % %
Reserve requirement ratios

Seven-day Large institutions 7 7

8 20
repo
(month average) 6 6
One-year 5 5
6 15
benchmark
lending 4 4
Medium institutions
4 10
3 3
Small institutions
2 2
2 5
One-year
benchmark 1 1
deposit One-year MLF*
0 0 0 0
2012 2017 2022 2012 2017 2022 2002 2006 2010 2014 2018 2022
* Medium term lending facility. Sources: RBA; Yieldbroker
Sources: CEIC Data; RBA

Policy Interest Rates – Emerging Markets 10-year Government Bond Yields

% % % %

6 6
12 20
ndonesia* Russia* 5
US
5
hilippines Brazil
China
4 4
9
ndia alaysia 15

3 3
Germany
6 10
2 2

1 1
3 5 Japan
South exico 0 0
Thailand South Korea Africa
0 0 -1 -1
2010 2016 2022 2010 2016 2022 2002 2006 2010 2014 2018 2022
* Breaks in series indicate changes in the official policy rates for Russia Sources: CEIC Data; Refinitiv
(September 2013) and Indonesia (August 2016).
Source: Central banks

C H A R T PA C K | J U N E 2 0 2 2 21
 I N T E R E S T R AT E S

Spred between Austrin 0-year Bond Australian Non-financial Corporate Bond Yields
3-year target
Yield and the Cash Rate Target % %
ppt ppt
BBB
4 4
9 9

2 2

6 6
0 0
A
-2 -2
3 3

-4 -4

0 0
-6 -6 2006 2010 2014 2018 2022
1992 1998 2004 2010 2016 2022
Sources: Bloomberg; RBA
Source: RBA

Differential between Australian and Australian Non-financial Corporate Bond Spreads

US 10-year Government Bond Yields Spread to government yields; 3-year target
bps bps
bps bps

400 400 800 800

300 300
600 600
BBB
200 200
400 400
100 100

200 200
0 0
A

0 0
-100 -100 2006 2010 2014 2018 2022
1992 1998 2004 2010 2016 2022
Sources: Bloomberg; RBA; Yieldbroker
Sources: RBA; Refinitiv; Yieldbroker

C H A R T PA C K | J U N E 2 0 2 2 22
 I N T E R E S T R AT E S

US Corporate Bond Yields Chinese Corporate Bond Yields

% % 5-year maturity
% %
10 10
BBB corporates*
8 8 8 8
Low-rated*

6 6
AA corporates* 6 6

4 4

2 2 4 4
High-rated**
Five-year swap
0 0
2006 2010 2014 2018 2022 2 2
* Includes financials and non-financials. 2010 2013 2016 2019 2022
Source: ICE Data is used with permission * Based on AA- domestically rated bond.
** Based on AAA domestically rated bond.
Source: CEIC Data

US Corporate Bond Spreads Emerging Market Government Bond Yields*

To US government bonds US dollar-denominated
bps bps % %

600 600 20 20
BBB corporates* Europe

400 400 15 15
AA corporates* Latin America

200 200 10 10

Asia
0 0 5 5
Five-year swap

-200 -200 0 0
2006 2010 2014 2018 2022 1997 2002 2007 2012 2017 2022
* Includes financials and non-financials. * Weighted average across issuers.
Sources: Bloomberg; ICE Data is used with permission Source: J.P. Morgan

C H A R T PA C K | J U N E 2 0 2 2 23
 I N T E R E S T R AT E S

Average Housing Interest Rates Fixed Housing Interest Rates

% Variable-rate loans Fixed-rate loans* % 3-year maturity
% %
6 6 12 12
Reference
rates**
10 10
5 5

8 8
Outstanding loans***
4 4 Advertised*
6 6

3 3 4 4
New loans*** Swap rate
2 2
2 2
2017 2021 2017 2021
0 0
* Weighted average interest rate across all fixed-rate periods. 1997 2002 2007 2012 2017 2022
** Major banks’ standard reference rates for variable-rate loans.
* Available to owner-occupiers.
*** Series break in July 2019; thereafter, data based on EFS collection.
Sources: Banks’ websites; CANSTAR; RBA; Refinitiv
Sources: APRA; banks’ websites; CANSTAR; RBA; Securitisation System

Housing Interest Rates* Australian Business Lending Rates*

Outstanding loans Average interest rate on credit outstanding
% Owner-occupier Investor % % %
Small loans
5.0 5.0
8 8

4.5 4.5 Small business

Interest-only (EFS)
6 6
Large loans
4.0 4.0

4 4
3.5 3.5
Medium business
(EFS)
3.0 3.0 2 2
Large business
Principal-and-interest
(EFS)
2.5 2.5 0 0
2018 2022 2018 2022 1997 2002 2007 2012 2017 2022
* Average of variable-rate securitised loans to 2019; thereafter, average * Small loans are loans less than $2 million; large loans are loans $2
of fixed and variable-rate loans, based on EFS data. million or more; new series from July 2019 are from the Economic
Sources: APRA; RBA; Securitisation System and Financial Statistics (EFS) collection (see Statistical Table F7).
Sources: APRA; RBA

C H A R T PA C K | J U N E 2 0 2 2 24
Share Markets
Share Price Accumulation Indices Advanced Economies’ Share Price Indices
Log scale, end December 994 = 00 Log scale end December 1994 = 100
index index inde inde

,00 ,00 800 800

900 900 600 600
700 700 400 400
ASX 200 US Euro area
500 500
S&P 500
200 200
300 300
U
100 100
S
 orld
Japan
00 00
80 80 40 40
997 2002 2007 202 207 2022 199 2002 200 2012 201 2022
Sources: Bloomberg; RBA B B
Sources: loomberg; R

Emerging Markets’ Share Price Indices*

Log scale, end December 1994 = 100
index index
1,500 1,500
Emerging Europe
1,000 1,000

500 500

China
200 200

World Latin America

100 100

Emerging Asia

40 40
1997 2002 2007 2012 2017 2022
* MSCI indices; Shanghai Composite Index for China.
Sources: Bloomberg; MSCI; RBA

C H A R T PA C K | J U N E 2 0 2 2 25
Bond Issuance
Bonds on Issue in Australia Total !on-go"e#nment Bonds on Issue
$b $b All currency denominations
800 800
b b
00 00
600 600
600 600 %inancials
00 00 450 4 0
Non-government**
400 400
Non-financial
300 300 300 300
corporations
200 Australian State 200
government* governments
00 00 150 1 0
Asset-backed
0 0 Non-residents'
992 998 2004 200 206 2022 0
securities
0
* Ecludes bonds urchased by the Australian Goernment. 1992 1998 2004 2010 2016 2022
** Ecludes ADsÕ self-securitisations includes goernment-guaranteed * Australian dollar-denominated bonds only.
bonds. ( ) + +
Sources: ABS; AOF; Bloomberg; angaes; Priate Placement
Sources: ABS; Bloomberg; angaNe s; rivate lacement Monitor; RBA

onitor; RBA; State Treasury ororations

Non-gov./nm.nt Bond 0ssu2n3. [on\government Bon]s on Issue in ^ustra_ia

Gross issuance UV UV
>b Domestic issuers : Australia >b
;on-resident issuers :: ZWW
4< 4< 200
Financials
2< 2< 150 15W

>b >b Asset-Vacked securities*

?ffshore 100 1WW
6< 6<

4< 4< 50 5W
`on-financial
2< 2< `on-residents corporations
0 W
< < 1992 1998 2004 2010 2016 2022
2<<2 2<<6 2<@< 2<@4 2<@8 2<22 * fh i
cludes ADIs self-securitisations.
* DGcludes ADHs’ self-securitisations. mj o m
Sources: ABS; Bloo erg; Kanga ews; Private Place ent Monitor; RBA
** Jffshore non-resident issuance includes Australian dollar-denominated
bonds only.
Sources: Bloomberg; QangaRews; Private Placement Monitor; RBA

C H A R T PA C K | J U N E 2 0 2 2 26
 B O N D I S S UA N C E

US and Euro Area Corporate Bond Issuance* Emerging Market Corporate Bond Issuance*
qross issutzce Žross issuance
{S‚b |i}~}ci~ls {S {S‚b S‘b China S‘b
500
o}€i}~}ci~ls 500 
Foreign currency denominated
400 400
300

Local currency denominated
300

300 300 200 200

200 200
100 100
100 100

{S‚b ƒuro tret {S‚b S‘b ’ther S‘b

„00 „00 225 225
600 600
150 150
400 400
200 200 75 75

0 0 0 0
2006 2010 2014 201„ 2022 2006 2010 201” 201“ 2022
* …† ‡ ˆ ‰ Š‰ Š ˆ‰ ‹
u e 2022 is u r er o d e * • – — —
une 2022 is uarter to date.
Œˆ 
Sources: e lo ic; RBA ˜
Sources: Dealogic RBA

C H A R T PA C K | J U N E 2 0 2 2 27
Exchange Rates
Australian ollar Trade-žeŸghted  ¡de¢* °
Official Reserve Assets*
°
indeœ indeœ
A b A b
±fficial reser²e assets
¯0 ¯0
80 80
Real
®0 ®0
›0 ›0 40 40

20 20
60 60 ³oreign currenc´ liµuidit´¶¶
A b ° A b °
£ominal 4 4
š0 š0 2 2
0
¹ ²
RBA foreign exchange mar et inter ention transactions ¶¶¶ 0
¸2 ¸2
40
™98› ™994 200™ 20™š
40 ¸4 ¸4
2008 2022 199 · 2002 200· 2012 201· 2022
* ¤ay ¥9¦0 § ¥00 for nominal; real inde¨ed to e©uate ªost-float * ºhe reporting methodolog» for official reser¼e asset data changes
a«erages; latest obser«ations for real T¬­ are estimates. in 201½.
Sources: ABS; RBA; Refiniti«; ¬¤/Reuters ** Excludes net for¾ard foreign currenc» commitments.
*** Data up to ¿0 Àune 2019; a positi¼e ¼alue indicates a purchase of
foreign exchange, ¾hile a negati¼e ¼alue indicates a sale of foreign
exchange.
Source: RBA

AÅÆtralÇan Dollar ÑS ÒoÓÓar

Ãen US$, yen USÏ
euro
250 Ì.ËÌ
USÏ per euro*
200 1Ä60 ÔR×S, inverted scaleØ
Èen Éer A$ 210 1.ÌÌ
ÊLHS)
1Á0 Euro per A$* 1Ä20 170 1.ÎÌ
US$ per A$ (RHS)
(RHS)
130 1.4Ì
100 0Ä80 Ùen per USÏ
ÔÖ×SØ
90 1.ÍÌ

Á0 0Ä40 50 1.ËÌ
198Â 1994 2001 2008 201Á 2022 1982 1990 1998 2006 2014 2022
* ECU per A$ until 31 December 1998. * Ú Û
US per CU until 31 Dece ber 199 . Ü Ý
Source: Bloomberg Ü
Sources: Bloo berg; urostat Û

C H A R T PA C K | J U N E 2 0 2 2 28
 E XC H A N G E R AT E S

Selecßed àáiaâ Cãääeâcieá agaiâáß ßhe US Dollar íî ïoðinal Tradeñòeighted Indices

å1 æanuary 2000 ç 100 1999–2020 average = 100
indeÞ indeÞ index index
Singapore Japanese yen
140 140
120 120
Soutê ëorea US dollar
120 120

Malaysia éêailand 110 110

100 100
100 100
80 80
èndia
90 90
60 60
èndonesia
Euro
40 40 80 80
2002 2006 2010 2014 2018 2022 2002 2007 2012 2017 2022
ì
Source: Bloom erg Sources: BIS; Bloomberg; Board of Governors of the Federal Reserve
System

Chinese Renminbi
index yuan

130 6.0

120 6.5

110 7.0

100 7.5
ùominal effectiúe exchange rate* ô.0
(LõSö 2010 a÷erage ø 100)
90

80 ûuan per üSý ô.5

(RõSö monthly a÷erageö in÷erted scale)
70 ó.0
60 ó.5
2002 2006 2010 2014 2018 2022
* þ ÿ
onthly a erage nominal rate calculated using BIS EER weights.
ÿ
Sources: BIS; Refinit

C H A R T PA C K | J U N E 2 0 2 2 29
Banking Indicators
Australian Bank Profitability* Australian Bank Profits
Return on shareholdersÕ equity after tax and minority interests Net profit after tax Bad and doubtful debts charge
% % $b Major banks Major banks $b

Majors 12 6
20 20

6 0

10 10

$b Other Australian-owned Other Australian-owned $b

Other Australian-o ned banks banks banks
0 0
2.2 1.1

-10 -10 1.1 0.0

1991 1997 2003 2009 2015 2021
* Fiscal years from 2003 on
ards; prior data are as reported in banks
financial statements
Sources: PR; Banks annual reports; RB
$b Foreign-owned banks Foreign-owned banks $b

1.5 1.5

Maor Banks Net Interest Margin*

Domestic, half-yearly 0.0 0.0
% %

-1.5 -1.5
2007 2014 2021 2007 2014 2021
3.0 3.0
Sources: APRA; RBA

2.5 2.5

2.0 2.0

1.5 1.5
2001 2005 2009 2013 2017 2021
* Data for a given period relate to banks’ public profit reports released
in that half; IFRS basis from 2006, AGAAP prior; excludes St George
Bank and Bankwest prior to the first half of 2009.
Sources: Banks’ financial reports; RBA

C H A R T PA C K | J U N E 2 0 2 2 30
 B A N K I N G I N D I C ATO R S

Banks’ Non-performing Assets Banks’ Non-performing Assets

Domestic boo
s Consolidated global operations, share of on-balance sheet assets
Sare of all assets Sare of assets by type
% % % %

Total*
3
Business
3 6 6
(56%)

2 2 4 4
Personal
otal (3%)
1 1 2 2

Housing mpaired
(41%)
0 0
200 200
0 0
2014 2021 2014 2021 11 16 2001 2006 2011 2016 2021
* ncludes lending to financial usinesses, ills, sort-term and long-term ncludes assets 0+ days past due that are well secured
det securities and oter non-ouseold loans
*

** ac categorys sare of total domestic lending at Marc 2021 is son Source: APRA
in parenteses; sares may not add up to 100 due to rounding
Sources: APRA; RBA

undin o !osition o" #an$s in Australia* Caital Ratios*

Share of total funding Consolidated global operations of locally incorporated ADIs
Bans Credit unions and
% % % %
building societies
0 0
Domestic deposits 20 20
50 50

15 15
40 40
Total
30 30
Short-term de%t** 10 10
Tier 1
20 20
Long-term de%t
5
CET1 5
10 10
&quity Securitisation '++*** Tier 2
0 0 0 0
200 2010 2014 201 2022 13 2006 201 13 2006 201
* v
Adjusted for mo ements in foreign exchange rates; tenor of de t is -    8
-
* Per cent of ris -weighted assets; brea in arch 200 due to the
estimated on a residual maturity asis.
   
.
introduction of Basel for most AD s; brea in arch 2013 due to the
** ncludes deposits and intragroup funding from non-residents.

introduction of Basel for all AD s
/ 0 0
*** erm unding acility.
Source: AP A R
- v 1
Sources: ABS; APRA; Bloom erg; RBA; Refiniti ; Standard Poor s 2

C H A R T PA C K | J U N E 2 0 2 2 31