The Australian Economy and

Financial Markets
Chart Pack | October 2023
The Australian Economy and Financial Markets
Contents
World Economy 1
Australian Growth 4
Australian Inflation 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
Banking Indicators 30
© Reserve Bank of Australia 2023

Apart from any use as permitted under the Copyright Act 1968, and the permissions explicitly granted
below, all other rights are reserved in all materials contained in this publication.

All materials contained in this publication, with the exception of any Excluded Material as defined on the
RBA website, are provided under a Creative Commons Attribution 4.0 International License. The materials
covered by this licence may be used, reproduced, published, communicated to the public and adapted
provided that the RBA is properly attributed in the following manner:

Source: Reserve Bank of Australia 2023 OR Source: RBA 2023

For the full copyright and disclaimer provisions which apply to this publication, including those
provisions which relate to Excluded Material, see the RBA website.
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

2003 2007 2011 2015 2019 2023 2007 2011 2015 2019 2023
* 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

2003 2007 2011 2015 2019 2023 2003 2007 2011 2015 2019 2023
Source: Refinitiv. Sources: CEIC Data; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 1
 W O R L D E CO N O M Y

Inflation – Advanced Economies Inflation – China and India

Year-ended Year-ended
% % % %
India
9 9 15 15

6 6 10 10
United States
3 3 5 5

0 0 0 0
Japan* Euro area
China
-3 -3 -5 -5
2007 2011 2015 2019 2023 2003 2007 2011 2015 2019 2023
* Excludes the effects of the consumption tax increase in 2014. Source: CEIC Data.
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
2007 2011 2015 2019 2023
-5 -5
* Average hourly earnings for the US; compensation per employee for 2003 2007 2011 2015 2019 2023
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 | O C TO B E R 2 0 2 3 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 120 120
40 20
20 10 90 90

0 0 60 60
-20 -10
30 30
-40 -20 2015 2019 2023 2015 2019 2023
2011 2017 2023 2011 2017 2023 * Year-ended.
* Diffusion index; average of the official and Caixin. ** China Index Academy.
Sources: CEIC Data; Markit Economics; RBA. *** Construction, installation, equipment purchases and other.
Sources: CEIC Data; RBA; WIND Information.

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**
20 20 Plate glass
200 200

Crude steel
10 10 150 150
Cement

100 100
0 0
2011 2015 2019 2023
50 50
* Sum of business loans, securities financing and off-balance sheet 2011 2017 2023 2011 2017 2023
financing.
** Net government bond issuance includes local government bond * Seasonally adjusted by the RBA.
issuance to pay off debt previously classified as business financing, Sources: CEIC Data; RBA.
and uses RBA estimates prior to 2016.
Sources: CEIC Data; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 3
Australian Growth

GDP Growth Contributions to GDP Growth

% % Year-ended
ppt ppt
June 2023

8 8

Year-ended 2 2

4 4

1 1
0 0
Quarterly

0 0
-4 -4

-8 -8 -1 -1
1993 1998 2003 2008 2013 2018 2023

GDP

Consumption

investment

investment

Non-mining

Government

Exports

Imports
investment
Dwelling

Mining
Source: ABS.

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
2003 2007 2011 2015 2019 2023 1998 2003 2008 2013 2018 2023
* 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 | O C TO B E R 2 0 2 3 4
Australian Inflation

Consumer Price Inflation* Measures of Underlying Inflation*

% % Year-ended
% %

9 9
10 10

Year-ended CPI excl volatile items

6 6
3 3
0 0
Quarterly
(seasonally adjusted)
8 8
Weighted median
6 6
Trimmed mean
4 4
2 2

-3 -3
1988 1995 2002 2009 2016 2023 0 0
* Excludes interest charges prior to the September quarter 1998; 1988 1995 2002 2009 2016 2023
adjusted for the tax changes of 1999–2000. * Excludes interest charges prior to September 1998 and deposit & loan
Sources: ABS; RBA. facilities prior to September 2011; adjusted for 1999–2000 tax changes.
Sources: ABS; RBA.

Tradable and Non-tradable Inflation*

% Non-tradables** %

6 6
Year-ended
3 3

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

6 6

3 3

0 0

-3 -3
1993 1998 2003 2008 2013 2018 2023
* 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 | O C TO B E R 2 0 2 3 5
Household Sector

Household Income and Consumption* Consumer Sentiment*

% Real, year-ended growth % Average since 1980 = 100
Consumption index index
8 8

0 0 105 105
Disposable income
-8 -8
95 95
% Saving ratio %

16 16 85 85

8 8
75 75
0 0

-8 -8
1993 1999 2005 2011 2017 2023 65 65
2011 2015 2019 2023
* Household sector includes unincorporated enterprises; disposable * Average of the ANZ-Roy Morgan and Westpac-Melbourne Institute
income is after tax and interest payments; saving ratio is net of
consumer sentiment measure of respondents’ perceptions of their
depreciation.
personal finances relative to the previous year; ANZ-Roy Morgan index
Sources: ABS; RBA. 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
Detached houses
24 24 Total
16 16

18 18 12 12

8 8
12 12
4 4
Higher-density housing
6 6 0 0
1993 1999 2005 2011 2017 2023 1993 1999 2005 2011 2017 2023
* Reference year is 2020/21. Source: ABS.
Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 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 1.6
Net wealth

600 600
4 1.2 Dwellings

400 400

3 0.8 Financial assets

200 200

Liabilities
2 0.4 0 0
1993 2008 2023 1993 2008 2023 1998 2003 2008 2013 2018 2023
* 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
Residex* 15 15
0 0
10 10
-5 -5
CoreLogic**
5 5
Investor
-10 -10
2011 2015 2019 2023 0 0
* ABS is a quarterly stratified median price index; Residex is a quarterly 2003 2007 2011 2015 2019 2023
repeat sales price index.
* Seasonally adjusted.
** Monthly hedonic price index; non-seasonally adjusted.
*** Quarterly stratified median price index.
Sources: ABS; RBA.

Sources: ABS; APM; CoreLogic; RBA; Residex.

C H A R T PA C K | O C TO B E R 2 0 2 3 7
Business Sector

Business Investment* Capital Expenditure – Mining and Non-mining*

Share of nominal 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
12 12
4 4

10 10 2 2
1993 1999 2005 2011 2017 2023 95 / 96 09 / 10 23 / 24 95 / 96 09 / 10 23 / 24
* Adjusted for second-hand asset transfers between the private and * Dots are firms’ expectations for 2023/24; adjusted for historical
other sectors. 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 91 / 92 96 / 97 01 / 02 06 / 07 11 / 12 16 / 17 21 / 22
1993 1999 2005 2011 2017 2023 * Nominal; includes second hand asset transfers.
* Adjusted for second-hand asset transfers between the private and ** Includes: information media and telecommunications; rental, hiring and
other sectors. real estate services; professional, scientific and technical services;
administrative and support services.
Source: ABS.
Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
1998 2003 2008 2013 2018 2023
* Gross operating profits; inventory valuation adjusted. % Capacity utilisation %
Sources: ABS; RBA.
84 84

80 80
Lending to Businesses* Average since 1989
Break-adjusted 76 76
$b $b
72 72

Large business 68 68
1993 1999 2005 2011 2017 2023
400 400 * Net balance; deviation from average since 1989.
Sources: NAB; RBA.

Medium business

200 200

Small business

0 0
2019 2020 2021 2022 2023
* EFS data are based on reporting of banks and finance companies that
have $2 billion or more of business credit. Data in April 2023
break-adjusted for revised defintions of business sizes for IRB reporting
institutions.
Sources: APRA; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
450 450
Fixed-rate

Secured by 300 300

3 3
residential
property** Variable-rate
150 150

0 0 0 0
2020 2023 2020 2023 2020 2023 2020 2023 2020 2023 2020 2023
* Changes to business size definitions in April 2023 resulted in some
Secured (other) Unsecured
large business credit being reclassified as medium business credit and
some medium business credit being reclassified as small business Secured (residential property) Secured
credit. * Changes to business size definitions in April 2023 resulted in some
** Small business loans secured by residential property can have fixed large business credit being reclassified as medium business credit and
or variable interest rate terms and are included in the fixed-rate and some medium business credit being reclassified as small business
variable-rate lines. credit.
Sources: APRA; RBA. Sources: APRA; RBA.

Business Loan Commitments* Lending to Selected Industries

Small and medium-sized businesses, credit outstanding*
Small and medium-sized businesses, excluding refinancing
$b $b
$b $b Highly affected by Less affected by
Other** Purchase of property COVID-19** COVID-19**
Working capital Construction
Plant and equipment 150 150
12 12
Rental

9 9 100 100
Total Agriculture

Other highly affected*** Other services****

6 6 50 50
Accom & food
Construction
Admin Healthcare
3 3
0 0
2019 2021 2023 2019 2021 2023
* Changes to business size definitions in April 2023 resulted in some
large business credit being reclassified as medium business credit and
0 0 some medium business credit being reclassified as small business
2019 2020 2021 2022 2023 credit.
* ** Highly affected industries had the highest share of businesses report
Fixed-term loans; not seasonally adjusted. Changes to business size
a fall in revenue of greater than 50 per cent in a June 2020 ABS survey;
definitions in April 2023 resulted in some large business credit being
less affected industries are the top four by value of SME lending.
reclassified as medium business credit and some medium business *** Education & training; arts & recreation; information media & telecoms.
credit being reclassified as small business credit.
**** 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 | O C TO B E R 2 0 2 3 10
Credit and Money

Credit and Broad Money Growth Credit Growth

Year-ended % Owner-occupier Investor housing Business* %
% % housing
Broad money
10 10
15 15

0 0
10 10 6-month-ended
annualised

Credit* % 3-month rolling %

5 5 Monthly average
0.9 0.9

0.0 0.0
0 0
1998 2003 2008 2013 2018 2023 -0.9 -0.9
* Excluding financial business post May 2004. 2017 2020 2023 2020 2023 2020 2023
Sources: ABS; APRA; RBA. * Excluding financial businesses.
Sources: APRA; RBA.

Monetary Aggregates Growth Credit Growth by Sector

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

15 15 Housing
10 10
10 10 Business*
0 0
5 5 Personal
Currency
-10 -10
0 0

-5 -5 -20 -20
1998 2003 2008 2013 2018 2023 2007 2011 2015 2019 2023
Sources: APRA; RBA. * Excluding financial businesses.
Sources: ABS; APRA; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 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 1998 2003 2008 2013 2018 2023
81 / 82 89 / 90 97 / 98 05 / 06 13 / 14 21 / 22 * Total pay excluding bonuses.
* Excluding livestock & orchards, dwellings and ownership transfer costs. Source: ABS.
Sources: ABS; RBA.

Capital Ratios* Unit Labour Costs Growth

1979/80 = 100 Non-farm, year-ended
index index % Unit labour costs %
15 15
200 200 10 10
Capital–labour ratio 5 5
175 175 0 0
-5 -5
150 150 % %
Average earnings per hour
10 10
125 125
5 5
Capital–output ratio
0 0
100 100 Labour productivity per hour
-5 -5

75 75 -10 -10
81 / 82 89 / 90 97 / 98 05 / 06 13 / 14 21 / 22 1998 2003 2008 2013 2018 2023
* Capital stock excludes livestock & orchards, dwellings and ownership Sources: ABS; RBA.
transfer costs.
Sources: ABS; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
index index

65 65 130 130
Participation rate
120 120
60 60 Employment
110 110

Total hours worked

55 55 100 100
Employment-to-population ratio
Average hours worked
90 90
50 50
1975 1987 1999 2011 2023 80 80
Source: ABS. 2007 2011 2015 2019 2023
* Seasonally adjusted.
Sources: ABS; RBA.

Labour Underutilisation Rates Job Vacancies and Advertisements

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

18 18 3 3
Advertisements
Underutilisation rate* (JSA)
Vacancies*
(ABS survey)
12 12 2 2

Unemployment rate
6 6 1 1

Underemployment rate**
0 0 0 0
1967 1981 1995 2009 2023 2007 2011 2015 2019 2023
* Sum of the unemployment and underemployment rates. * This survey was suspended between May 2008 and November 2009.
** Employed people who want, and are available, to work more hours. Sources: ABS; Jobs and Skills Australia (JSA); RBA.
Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 13
Regions and Industry

State Share of Output State Unemployment Rates

Nominal Trend
% % % %
New South Wales South Australia
35 35 8 8

30 30 Tasmania
7 7
Victoria Victoria
25 25
6 6
20 20
Queensland 5 5
15 15
Western Australia 4 4
10 10 New South Wales
South Australia Western Australia
Queensland
3 3
5 5
Tasmania
0 0 2 2
91 / 92 97 / 98 03 / 04 09 / 10 15 / 16 21 / 22 2011 2017 2023 2011 2017 2023
Source: ABS. Source: ABS.

Industry Share of Output* Employment Growth by Industry*

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

Manufacturing
14 14 1,200 1,200
Retail and wholesale
trade
Business services
800 800
10 10 Household Public
Financial and insurance services services administration
400 400
Construction Construction
Other**
6 6
Mining 0 0
Retail and Mining Manufacturing
Agriculture wholesale trade
2 2 -400 -400
2015 2019 2023 2015 2019 2023
91 / 92 97 / 98 03 / 04 09 / 10 15 / 16 21 / 22
* The trend series have been suspended from June 2020 until more
* Nominal gross value added. certainty emerges in the underlying trend in labour market activity over
** Includes: information media and telecommunications; rental, hiring and the COVID-19 period.
real estate services; professional, scientific and technical services; ** Includes agriculture, forestry & fishing; transport, postal & warehousing;
administrative and support services. and electricity, gas, water & waste services.
Source: ABS. Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 14
Government

Australian Government Budget Balance* State Budget Balances*

Per cent of nominal GDP Per cent of nominal GDP
% % % %

1.0 1.0
2 2
0.5 0.5
0 0
0.0 0.0

-2 -2 -0.5 -0.5

-1.0 -1.0
-4 -4
-1.5 -1.5
-6 -6
-2.0 -2.0

-8 -8 -2.5 -2.5
81 / 82 90 / 91 99 / 00 08 / 09 17 / 18 26 / 27 86 / 87 93 / 94 00 / 01 07 / 08 14 / 15 21 / 22
* Underlying cash balance; 2023/24 Budget. * Underlying 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
1993 1999 2005 2011 2017 2023 2007 2011 2015 2019 2023
Source: ABS. * Only includes taxation of resident corporations.
Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 15
Commodity Prices

RBA Index of Commodity Prices Oil and LNG Prices

SDR, 2021/22 average = 100, log scale Monthly
index index US$/b US$/
120 120 MMBtu
100 100 250 50

80 80
200 40

60 60
150 30
Brent oil
(LHS) Japan and Korea LNG spot
(RHS)
40 40 100 20

50 10

20 20 0 0
1987 1993 1999 2005 2011 2017 2023 2011 2014 2017 2020 2023
Source: RBA. Sources: Bloomberg; RBA; Refinitiv.

Bulk Commodity Prices Terms of Trade*

Free on board basis 2020/21 average = 100, log scale
US$/t Iron ore Thermal coal Coking coal US$/t index index
(LHS) (LHS) (RHS)
100 100

300 600
Average 80 80
Australian
export price
Spot price*
150 300 60 60

0 0 40 40
2016 2023 2016 2023 2016 2023 1963 1983 2003 2023
* Iron ore 62% Fe fines index; Newcastle thermal coal and premium * Annual data are used prior to 1960.
hard coking coal.
Sources: ABS; RBA.
Sources: ABS; Bloomberg; McCloskey by OPIS; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 16
Balance of Payments and External Position

Export Volumes Resource Exports*

Log scale, quarterly Log scale, quarterly
$b $b Mt Mt

Services
LNG
Resources
48 16 200 12

Rural
Iron ore

24 8 100 6

Manufacturing
Coal
12 4 50 3
2003 2013 2023 2003 2013 2023 2011 2017 2023 2011 2017 2023
Sources: ABS; RBA. * Seasonally adjusted by the RBA.
Sources: ABS; Department of Industry, Science, Energy and Resources;
RBA.

Import Volumes Exports by Destination

Log scale, quarterly Annual, share of total values
$b $b % %

Intermediate
32 32
30 30
Consumption
China
16 16

20 20
Services Japan
8 8
Capital US
10 10
4 4 EU-27* South Korea

India UK
2 2 0 0
2003 2013 2023 2003 2013 2023 2002 2006 2010 2014 2018 2022
Source: ABS. * The series has been revised to exclude the UK.
Sources: ABS; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
% %
Debt
8 8
6 6
Total
4 4

0 0 2 2

0 0
-3 -3 Equity
-2 -2
-6 -6
Current account balance -4 -4

-9 -9 -6 -6
1993 1999 2005 2011 2017 2023 2003 2008 2013 2018 2023
Source: ABS. * Latest year includes data for the year to date.
Source: ABS.

Net Foreign Liabilities External Position*

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

0 0
Equity 1,000 1,000
-15 -15

-30 -30 0 0
2003 2008 2013 2018 2023 2009 2016 2023 2009 2016 2023
* Short-term includes debt with residual maturity of one year or less; * Hedge ratios inferred from ABS Foreign Currency Exposure surveys.
long-term includes all other debt. Sources: ABS; RBA.
Source: ABS.

C H A R T PA C K | O C TO B E R 2 0 2 3 18
Central Bank Balance Sheets and Bond Purchases

RBA Assets RBA Liabilities

$b $b $b $b
Financial year Weekly Financial year Weekly
700 700 700 700

600 600 600 600

500 500 500 500

400 400 400 400

300 300 300 300

200 200 200 200

100 100 100 100

0 0 0 0

-100 -100 -100 -100

15/16 17/18 19/20 21/22 S D M J S 15/16 17/18 19/20 21/22 S D M J S
2022 2023 2022 2023
Open repo & other assets Domestic bonds Capital & Reserve Bank Reserve Fund Government & other deposits
OMO repo Gold & foreign exchange Banknotes Other liabilities
Term Funding Facility Exchange Settlement balances
Source: RBA. Source: RBA.

Central Bank Total Assets Central Bank Government Bond Holdings

Per cent of eligible stock outstanding*
Per cent of GDP
% %
% %
Japan
50 50
150 30 Sweden
Australia UK
Japan 40 40
125 25 NZ
Euro area**
Sweden 30 30
100 20
US
20 20
75 15 Canada
NZ Canada
Euro area 10 10
UK
50 10 Australia
0 0
25 5 2019 2023 2019 2023
* Data include nominal and inflation-linked bonds issued by central
US governments that are eligible for purchase in the secondary market
under central banks’ government bond purchase programs (for
0 0 Australia, this is nominal Australian Government Securities only); data
2019 2023 2019 2023 for euro area also include eligible bonds issued by local and regional
governments.
Sources: Central banks; RBA; Refinitiv.
** 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 | O C TO B E R 2 0 2 3 19
Interest Rates

Australian Cash Rate Target Policy Interest Rates

% % % %
US
7 7 5 5

6 6
4 4
5 5
3 3
4 4 Euro area*
2 2
3 3
1 1
2 2

1 1 0 0
Japan

0 0 -1 -1
1998 2003 2008 2013 2018 2023 2007 2011 2015 2019 2023
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-day Bill Yield Policy Interest Rates – Selected
% % Advanced Economies
% %
8 8
Cash rate NZ
target 8 8
6 6
90-day bill yield
6 UK 6
4 4

2 2 4 4
Real cash rate*
0 0
2 2
Sweden
Canada
-2 -2
0 0
-4 -4 Switzerland
1998 2003 2008 2013 2018 2023
-2 -2
* Calculated using average of year-ended weighted median inflation 2007 2011 2015 2019 2023
and year-ended trimmed mean inflation.
Source: Central banks.
Sources: ABS; AFMA; ASX; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 20
 I N T E R E S T R AT E S

Monetary Policy – 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
6 15 5 5
benchmark
lending Medium
institutions 4 4
4 10
3 3
Small institutions
2 2
2 5
One-year
benchmark 1 1
One-year MLF*
deposit
0 0 0 0
2013 2018 2023 2013 2018 2023 2003 2008 2013 2018 2023
* 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
Indonesia* US
Russia* 5 5
Brazil
Philippines China
9 15 4 4
India Malaysia
3 3
Germany
6 10
2 2

1 1
3 5 Japan
South Mexico 0 0
Thailand South Korea Africa
0 0 -1 -1
2011 2017 2023 2011 2017 2023 2003 2008 2013 2018 2023
* 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 | O C TO B E R 2 0 2 3 21
 I N T E R E S T R AT E S

Spread between Australian 10-year Bond Australian Non-financial Corporate Bond Yields
Yield and the Cash Rate Target 3-year target
ppt ppt % %

BBB
4 4
9 9

2 2

0 0 6 6

A
-2 -2
3 3

-4 -4

-6 -6 0 0
1993 1999 2005 2011 2017 2023 2007 2011 2015 2019 2023
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

-100 -100 0 0
1993 1999 2005 2011 2017 2023 2007 2011 2015 2019 2023
Sources: RBA; Refinitiv; Yieldbroker. Sources: Bloomberg; RBA; Yieldbroker.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
2007 2011 2015 2019 2023 2 2
* Includes financials and non-financials. 2011 2014 2017 2020 2023
Sources: ICE Data is used with permission; Refinitiv. * 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
2007 2011 2015 2019 2023 1998 2003 2008 2013 2018 2023
* Includes financials and non-financials. * Weighted average across issuers.
** Series break from June 2023; thereafter 5-year swap calculation based
Source: J.P. Morgan.
on new data due to the cessation of US dollar LIBOR.
Sources: Bloomberg; ICE Data is used with permission.

C H A R T PA C K | O C TO B E R 2 0 2 3 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
% %

12 12
8 8

10 10
Reference
rates**
6 6 8 8
Advertised*
6 6
Outstanding loans***
4 4
4 4
Swap rate
New loans*** 2 2
2 2
2015 2019 2023 2019 2023
0 0
* Weighted average interest rate across all fixed-rate periods. 1993 1998 2003 2008 2013 2018 2023
** Major banks’ standard reference rates for owner-occupier variable-rate * Available to owner-occupiers.
loans.
*** 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

8 8
6 6
Small business
Interest-only (EFS)
6 6
5 5 Large loans

4 4
4 4
Medium business
(EFS)
2 2
Large business
3 3
(EFS)

Principal-and-interest 0 0
1998 2003 2008 2013 2018 2023
2 2 * Small loans are loans less than $2 million; large loans are loans $2
2019 2023 2019 2023 million or more; new series from July 2019 are from the Economic and
Financial Statistics (EFS) collection (see Statistical Table F7). Changes
* Average of variable-rate securitised loans to 2019; thereafter, average to business size definitions in April 2023 resulted in some large business
of fixed and variable-rate loans, based on EFS data. credit being reclassified as medium business credit and some medium
Sources: APRA; RBA; Securitisation System. business credit being reclassified as small business credit.
Sources: APRA; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 24
Share Markets

Share Price Accumulation Indices Advanced Economies’ Share Price Indices

Log scale, end December 1994 = 100 Log scale, end December 1994 = 100
index index index index

1,500 1,500 800 800

600 600
900 900
400 400
ASX 200 US Euro area
600 600

S&P 500 200 200

300 300 UK
100 100
MSCI world
Japan
100 100
80 80 40 40
1998 2003 2008 2013 2018 2023 1998 2003 2008 2013 2018 2023
Sources: Bloomberg; RBA. Sources: Bloomberg; RBA.

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
1998 2003 2008 2013 2018 2023
* MSCI indices; Shanghai Composite Index for China.
Sources: Bloomberg; MSCI; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 25
Bond Issuance

Bonds on Issue in Australia Total Non-government Bonds on Issue

$b $b All currency denominations
$b $b
800 800

700 700
600 600
600 600 Financials
500 500 450 450
Non-government**
400 400

300 Non-financial 300

300 300
corporations
200 Australian State 200
government* governments 150 150
100 100
Asset-backed
0 0 Non-residents*
1993 1999 2005 2011 2017 2023 securities
0 0
* Excludes bonds purchased by the Australian Government. 1993 1999 2005 2011 2017 2023
** Excludes ADIs’ self-securitisations, includes government-guaranteed * Australian dollar-denominated bonds only.
bonds. Sources: ABS; Bloomberg; KangaNews; Private Placement Monitor; RBA.
Sources: ABS; AOFM; Bloomberg; KangaNews; Private Placement Monitor;
RBA; State Treasury Corporations.

Non-government Bond Issuance Non-government Bonds on Issue in Australia

Gross issuance $b $b
$b Australia $b
Domestic issuers*
Non-resident issuers**
40 40 200 200
Financials
20 20 150 150

$b $b Asset-backed securities*
Offshore 100 100
60 60

40 40 50 50
Non-financial
20 20 Non-residents corporations
0 0
0 0 1993 1999 2005 2011 2017 2023
2003 2008 2013 2018 2023
* Excludes ADIs’ self-securitisations.
* Excludes ADIs’ self-securitisations. Sources: ABS; Bloomberg; KangaNews; Private Placement Monitor; RBA.
** Offshore non-resident issuance includes Australian dollar-denominated
bonds only.
Sources: Bloomberg; KangaNews; Private Placement Monitor; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 26
 B O N D I S S UA N C E

US and Euro Area Corporate Bond Issuance* Emerging Market Corporate Bond Issuance*
Gross issuance Gross issuance
US$b Financials US US$b US$b China US$b
Non-financials Foreign currency-denominated
600 600 300 300
Local currency-denominated

400 400 200 200

200 200 100 100

US$b Euro area US$b US$b Other US$b

900 900 225 225

600 600 150 150

300 300 75 75

0 0 0 0
2007 2011 2015 2019 2023 2007 2011 2015 2019 2023
* Most recent data is quarter-to-date. * Most recent data is quarter-to-date.
Sources: Dealogic; RBA. Sources: Dealogic; RBA.

C H A R T PA C K | O C TO B E R 2 0 2 3 27
Exchange Rates

Australian Dollar Trade-weighted Index* Official Reserve Assets*

A$b A$b
index index Official reserve assets
80 80

80 80
60 60
Real
40 40
70 70

20 20
Foreign currency liquidity**
60 60
A$b A$b
4 4
Nominal 2 2
50 50 RBA foreign exchange market intervention transactions***
0 0
-2 -2
40 40 -4 -4
1998 2003 2008 2013 2018 2023
1988 1995 2002 2009 2016 2023
* The reporting methodology for official reserve asset data changes
* May 1970 = 100 for nominal; real indexed to equate post-float averages; in 2015.
latest observations for real TWI are estimates. ** Excludes net forward foreign currency commitments.
Sources: ABS; RBA; Refinitiv; WM/Reuters. *** Data up to 30 June 2022; a positive value indicates a purchase of
foreign exchange, while a negative value indicates a sale of foreign
exchange.
Source: RBA.

Australian Dollar US Dollar

yen US$, yen US$
euro
250 0.80
US$ per euro*
200 1.60 (RHS, inverted scale)
Yen per A$ 210 1.00
(LHS)

150 Euro per A$* 1.20 170 1.20

(RHS)
US$ per A$
(RHS)
130 1.40
100 0.80 Yen per US$
(LHS)
90 1.60

50 0.40 50 1.80
1988 1995 2002 2009 2016 2023 1983 1991 1999 2007 2015 2023
* ECU per A$ until 31 December 1998. * US$ per ECU until 31 December 1998.
Source: Bloomberg. Sources: Bloomberg; Eurostat.

C H A R T PA C K | O C TO B E R 2 0 2 3 28
 E XC H A N G E R AT E S

Selected Asian Currencies against the US Dollar G3 Nominal Trade-weighted Indices

31 January 2000 = 100 1999–2020 average = 100
index index index index
Singapore Japanese yen
140 140 120 120
US dollar
South Korea
120 120 110 110

Malaysia Thailand
100 100 100 100

80 80 90 90
India
Euro
60 60 80 80
Indonesia

40 40 70 70
2003 2008 2013 2018 2023 2003 2008 2013 2018 2023
Source: Bloomberg. Sources: BIS; Bloomberg; Board of Governors of the Federal Reserve
System.

Chinese Renminbi
index yuan
Yuan per US$
(RHS, monthly average, inverted scale)
130 6.0

120 6.5

110 7.0

100 7.5

90 8.0

80 8.5
Nominal effective exchange rate*
(LHS, 2020 average = 100)
70 9.0

60 9.5
2003 2008 2013 2018 2023
* Monthly average nominal rate calculated using BIS EER weights.
Sources: BIS; Refinitiv.

C H A R T PA C K | O C TO B E R 2 0 2 3 29
Banking Indicators

Australian Bank Profitability* Australian Bank Profits

Return on shareholders’ equity after tax and minority interests Net profit after tax Bad and doubtful debts charge
% % $b Major banks Major banks $b

Majors 16 6
20 20

8 0

10 10

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

Other Australian-owned banks banks banks
0 0
3.0 1.1

-10 -10 1.5 0.0

1992 1998 2004 2010 2016 2022
* Fiscal years from 2003 onwards; prior data are as reported in banks’
financial statements
Sources: APRA; Banks’ annual reports; RBA $b Foreign-owned banks Foreign-owned banks $b

1.5 1.5
Major Banks’ Net Interest Margin*
Domestic, half-yearly
% % 0.0 0.0

-1.5 -1.5
3.0 3.0 2008 2015 2022 2008 2015 2022
Sources: APRA; RBA.

2.5 2.5

2.0 2.0

1.5 1.5
2003 2008 2013 2018 2023
* 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 | O C TO B E R 2 0 2 3 30
 B A N K I N G I N D I C ATO R S

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

Domestic books Consolidated global operations, share of loans and advances
% % % %
Share of all assets* Share of assets by type**

3 3 0.25 0.25
Business*
(34%)

0.20 0.20
2 2
Personal
(3%)
Total 0.15 0.15
1 1

0.10 0.10
Housing
(63%)
0 0
2007 2015 2023 2007 2015 2023 0.05 0.05
* Includes lending to financial businesses, bills, short-term and long-term 2003 2007 2011 2015 2019 2023
debt securities and other non-household loans
Source: APRA.
** Each category’s share of total domestic lending at December 2022 is
shown in parentheses; shares may not add up to 100 due to rounding
Sources: APRA; RBA.

Funding Composition of Banks in Australia* Capital Ratios*

Share of total funding Consolidated global operations of locally incorporated ADIs
% % % %
Banks Credit unions and
60 60 building societies

Domestic deposits 20 20
50 50

40 40 15 15
Total
30 30
Short-term debt**
10 10
20 20 Tier 1
Long-term debt
CET1
10 10 5 5
Equity Securitisation TFF***
Tier 2
0 0
2007 2011 2015 2019 2023 0 0
* Adjusted for movements in foreign exchange rates; tenor of debt is 1992 2007 2022 1992 2007 2022
estimated on a residual maturity basis. * Per cent of risk-weighted assets; break in March 2008 due to the
** Includes deposits and intragroup funding from non-residents. introduction of Basel II for most ADIs; break in March 2013 due to the
*** Term Funding Facility. introduction of Basel III for all ADIs.
Sources: ABS; APRA; Bloomberg; RBA; Refinitiv; Standard & Poor’s. Source: APRA.

C H A R T PA C K | O C TO B E R 2 0 2 3 31