RBA Cash Rate

Australia's Current Interest Rate


Last Meeting: 1 September 2020

Next Meeting: 6 October 2020


The RBA “Cash Rate” Target is what people commonly refer to as the current “interest rate”.

The cash rate is actually the interest rate charged on overnight loans between banks. The amount of interest a retail investor pays on a loan is equal to this rate plus a premium (which is the banks profit and typically 2.0 to 2.5%).

Variable interest rates at major banks will therefore (in most cases) move in harmony with the RBA’s official cash rate target.

When are Interest Rates Set?

The Reserve Bank of Australia’s Board sets the official cash rate target at 2:30pm (Sydney) on the first Tuesday of the month excluding January.

The market is immediately notified via a press release on the RBA's Interest Rate Decisions page.

What is the RBA's Role?

The RBA is Australia’s central bank and it’s responsible for setting Australia’s monetary policy with the aim of keeping the inflation rate low and stable between 2-3%.

In a perfect scenario, a Central Bank will increase rates when an economy is growing to slow growth and lower rates when an economy is struggling to stimulate growth. Interest rates can therefore be considered a rough proxy for the health of an economy.

Via the cash rate, the RBA has the ability to:

●   Stimulate or slow the economy ( interest rates = growth)
●   Manipulate the Australian dollar ( interest rates = AUD)
●   Control inflation ( interest rates = inflation)

In Australia, interest rates have varied significantly; from a high of 17.50% in January 1990 to the current record low 0.25%.

World Interest Rates

Central Bank Current Rate
Australian flag Reserve Bank of Australia 0.25%
Canadian flag Bank of Canada 0.25%
Chinese flag People's Bank of China 3.85%
European Union flag European Central Bank 0.00%
Japanese flag Bank of Japan -0.10%
Central Bank Current Rate
NZ flag Reserve Bank of New Zealand 0.25%
Russian flag Russian Central Bank 4.25%
Switzerland flag Swiss National Bank -0.75%
UK flag Bank of England 0.10%
USA flag US Federal Reserve 0.25%

Data updated: 4 September 2020


RBA Rate Indicator - Details and calculations

RBA Cash Rate History - Download (Excel)