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Australia Cash Rate (Reserve Bank of Australia Policy Rate)
See how changes in Australian monetary policy compare with the Bank of Canada’s direction and global interest rate trends.
- Last updated: — policy rate data and historical series refreshed automatically each day.
Central banks use policy rates to influence inflation, economic growth, and financial conditions. This page shows the latest Australian cash rate level along with a historical timeline to help you understand how RBA policy has evolved over time.
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Note: The Cash Rate Target is the interest rate at which banks lend funds to each other overnight on an unsecured basis. It is the primary tool used by the Reserve Bank of Australia (RBA) to manage inflation and influence economic activity across the country.
What is the Australian Cash Rate?
The cash rate is the benchmark interest rate targeted by the Reserve Bank of Australia for overnight lending between financial institutions. It serves as the foundation of Australia’s monetary policy framework and influences short-term interest rates across the economy.
Changes to the cash rate affect how money is priced in the banking system and guide broader financial conditions.
Who decides the rate and what they’re trying to achieve?
The Australian cash rate is set by the Reserve Bank Board, the RBA’s primary policy-making body. Rate decisions are guided by the Bank’s mandate to promote price stability, full employment, and the overall economic prosperity of the Australian people.
Policymakers assess inflation trends, labour market conditions, household spending, and global economic risks when determining the appropriate policy stance.
Why track global policy rates?
Currency movements
Policy-rate differences between countries can drive capital flows, influencing exchange rates as investors seek higher expected returns.
Credit and funding conditions
Central bank rates affect short-term funding costs, which feed through to loans, bonds, and broader credit markets.
Market valuation cycles
Shifts in policy rates change discount rates and growth expectations, influencing equities, housing markets, and commodity prices.
Why this matters for Canadians
Australian policy decisions can influence global risk sentiment, commodity markets, and currency dynamics, all of which feed into broader financial conditions relevant to Canadian investors and policymakers.
Related Australian benchmark rates
Australian Interbank Overnight Cash Rate (AONIA)
The Australian Overnight Index Average (AONIA) reflects the actual overnight cash market rate based on real interbank transactions. It provides a market-based reference for short-term funding conditions relative to the RBA’s cash rate target.
- Frequently Asked Questions
Central Bank Rates
FAQs
It is the benchmark interest rate targeted by the Reserve Bank of Australia for overnight lending between financial institutions and serves as the foundation of Australian monetary policy.
The Reserve Bank Board meets regularly throughout the year, typically monthly, and may adjust the cash rate depending on economic conditions.
Because the cash rate influences short-term funding costs for banks, which feed into lending rates for households and businesses.
No. Mortgage rates are determined by lenders and reflect funding costs, competition, inflation expectations, and economic conditions.
Australia plays a key role in global commodity markets and regional economic activity, which can influence global financial conditions and investor sentiment relevant to Canada.
Rate tables and charts are updated to reflect the most recent policy decisions and effective dates available at the time of publication.
Some sources reference policy announcement dates, while others display effective dates or market rates. Differences usually reflect methodology rather than errors.
The cash rate is the policy target set by the RBA, while AONIA reflects the actual rate observed in overnight interbank transactions.
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