The Reserve Bank of Australia left the cash rate unchanged at a record low of 0.25% during its May meeting. Policymakers noted that the economy is going through a difficult period, and projected that output will likely shrink by around 10% over the H1 and by 6% over the year as a whole. The Committee also kept its yield objective unchanged as the functioning of the bond markets has improved. Policymakers said that since launching QE, the bank has purchased around AUD 50.7 billion of securities and is prepared to scale-up purchases again to ensure bond markets remain functional. The Committee projected that the unemployment rate will peak at around 10% over the next months and remains above 7% at the end of next year. Policymakers added that it will maintain its efforts to keep funding costs low and credit available. The board reiterated that it will not increase the cash rate target until progress is being made towards full employment.
Interest Rate in Australia averaged 4.23 percent from 1990 until 2020, reaching an all time high of 17.50 percent in January of 1990 and a record low of 0.25 percent in March of 2020. This page provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Australia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2020. source: Reserve Bank of Australia
Interest Rate in Australia is expected to be 0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Australia to stand at 0.25 in 12 months time. In the long-term, the Australia Interest Rate is projected to trend around 0.50 percent in 2021 and 0.75 percent in 2022, according to our econometric models.