The benchmark interest rate in Australia was last recorded at 3.60 percent. This dataset provides - Australia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about Australia Long Term Interest Rate

• Australia Government Bond Yield: Australian Government: 10 Years was reported at 4.42 % pa in Feb 2025, compared with 4.48 % pa in the previous month.
• Australia Long Term Interest Rate data is updated monthly, available from Jul 1969 to Feb 2025.
• The data reached an all-time high of 16.50 % pa in Aug 1982 and a record low of 0.80 % pa in Oct 2020.
• Long Term Interest Rate is reported by reported by Reserve Bank of Australia.

Related information about Australia Long Term Interest Rate

• In the latest reports, Australia Short Term Interest Rate: Month End: Bank Acceptance Bills Rates: 90 days was reported at 4.12 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Cash Target Rate) was set at 4.10 % pa in Feb 2025.
• Australia Exchange Rate against USD averaged 1.49 (USD/AUD) in Jun 2023.

In June 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In the first half of 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0.1 percent in June 2025. In contrast, Russia maintained a high inflation rate of 9.4 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

The statistic shows the inflation rate in Australia from 1987 to 2023, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2023, the average inflation rate in Australia was at about 5.62 percent compared to the previous year. Australia's economy Australia has one of the world’s largest economies and is a significant global importer and exporter. It is also labeled as one of the G20 countries, also known as the Group of Twenty, which consists of 20 major economies around the globe. The Australian economy is highly dependent on its mining sector as well as its agricultural sector in order to grow, and it exports the majority of these goods to eastern Asian countries, most prominently China. Large quantities of exports have helped Australia maintain a stable economy and furthered economic expansion, despite being affected by several economic obstacles. Australia’s GDP has seen a significant increase over the past decade, more than doubling its value, and experienced a rather quick recovery from the 2008 financial crisis, which indicates that the country experienced economic growth as well as higher productivity. One of the primary reasons is the further development of the nation’s mining industry coupled with the expansion and success of many Australian mining companies.

Inflation Rate in Australia decreased to 2.10 percent in the second quarter of 2025 from 2.40 percent in the first quarter of 2025. This dataset provides the latest reported value for - Australia Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Deposit Interest Rate in Australia decreased to 2.70 percent in July from 2.75 percent in June of 2025. This dataset includes a chart with historical data for Deposit Interest Rate in Australia.

As of the end of March 2025, the average mortgage interest rate for Australian owner-occupier borrowers was around *** percent. In comparison, the average investor interest rate was approximately *** percent. These rates refer to outstanding housing loans from banks and registered financial corporations. New loans financed in that month had even similar interest rates, at *** percent for owner-occupiers and *** percent for investors, respectively.

The Reserve Bank of Australia's (RBA) cash rate target in-part determines interest rates on financial products.

The Finance sector's operating environment was previously characterised by record-low interest rates. Nonetheless, high inflation prompted the Reserve Bank of Australia (RBA) to hike the cash rate from May 2022 onwards. This shift allowed financial institutions to impose higher loan charges, propelling their revenue. Banks raised interest rates quicker than funding costs in the first half of 2022-23, boosting net interest margins. However, sophisticated competition and digital disruption have reshaped the sector and nibbled at the Big Four's dominance, weighing on ADIs' performance. In the first half of 2025, the fierce competition has forced ADIs to trim lending rates even ahead of RBA moves to protect their slice of the mortgage market. Higher cash rates initially widened net interest margins, but the expiry of cheap TFF funding and a fierce mortgage war are now compressing spreads, weighing on ADIs' profitability. Although ANZ's 2024 Suncorp Bank takeover highlights some consolidation, the real contest is unfolding in tech. Larger financial institutions are combatting intensified competition from neobanks and fintechs by upscaling their technology investments, strengthening their strategic partnerships with cloud providers and technology consulting firms and augmenting their digital offerings. Notable examples include the launch of ANZ Plus by ANZ and Commonwealth Bank's Unloan. Meanwhile, investor demand for rental properties, elevated residential housing prices and sizable state-infrastructure pipelines have continued to underpin loan growth, offsetting the drag from weaker mortgage affordability and volatile business sentiment. Overall, subdivision revenue is expected to rise at an annualised 8.3% over the five years through 2024-25, to $524.6 billion. This growth trajectory includes an estimated 4.8% decline in 2024-25 driven by rate cuts in 2025, which will weigh on income from interest-bearing assets. The Big Four banks will double down on technology investments and partnerships to counter threats from fintech startups and neobanks. As cybersecurity risks and APRA regulations evolve, financial institutions will gear up to strengthen their focus on shielding sensitive customer data and preserving trust, lifting compliance and operational costs. In the face of fierce competition, evolving regulations and shifting customer preferences, consolidation through M&As is poised to be a viable trend for survival and growth, especially among smaller financial institutions like credit unions. While rate cuts will challenge profitability within the sector, expansionary economic policies are poised to stimulate business and mortgage lending activity, presenting opportunities for strategic growth in a dynamic market. These trends are why Finance subdivision revenue is forecast to rise by an annualised 1.1% over the five years through the end of 2029-30, to $554.9 billion

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

Key information about Australia Exchange Rate against USD

• Australia Exchange Rate against USD averaged 1.505 (USD/AUD) in May 2023, compared with 1.495 USD/AUD in the previous month.
• Australia Exchange Rate against USD data is updated monthly, available from Jan 1957 to May 2023.
• The data reached an all-time high of 1.994 in Apr 2001 and a record low of 0.673 in Mar 1974.

CEIC extends history for monthly average Exchange Rate against USD. Federal Reserve Board provides average Exchange Rate against USD. Exchange Rate against USD prior to January 1971 is sourced from the International Monetary Fund.


Key information about Australia Exchange Rate against USD

• In the latest reports, Australia Short Term Interest Rate: Month End: Bank Acceptance Bills Rates: 90 days was reported at 4.042 % pa in May 2023.
• Its Long Term Interest Rate (Government Bond Yield: Australian Government: 10 Years) was reported at 3.500 % pa in May 2023.
• The cash rate (Policy Rate: Month End: Cash Target Rate) was set at 3.600 % pa in Apr 2023.

Interbank Rate in Australia decreased to 3.69 percent in August from 3.84 percent in July of 2025. This dataset provides - Australia Three Month Interbank Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

As of July 14, 2025, all Australian government debt securities had positive yields. Debt with a residual maturity of two years debt recorded the lowest yield at 3.41 percent, while debt with a residual of 30 years recorded the highest yield at 5.04 percent. It is usually the case that bonds with a longer maturity have a higher yield so as to compensate investors for the higher level of uncertainty about future market conditions.

The industry has grown on the back of increased loan volumes and elevated interest rates. A high-interest rate environment has allowed non-bank lenders to charge higher rates, boosting their revenue. Yet, it has also hiked their funding costs, hindering profitability as net interest margins plunged. The mortgage war in 2023 saw authorised deposit-taking institutions (ADIs) offer competitive rates and attractive packages like cashback. This trend intensified competition and squeezed non-bank lenders' margins in the mortgage segment. Non-bank lenders have attracted a broader consumer base by providing flexible lending terms and user-friendly platforms. They have also filled the service gap left by traditional lenders because of tight lending standards, like increased capital requirements and serviceability buffers. Nonetheless, challenging economic conditions and inflationary pressures have limited non-bank lenders' involvement in commercial loans. In addition, supply chain disruptions have weakened construction-related loans. As supply chain issues have eased, commercial loans' contribution to revenue has gradually recovered. Overall, industry revenue is expected to have surged at an annualised 13.5% over the five years through 2025-26, to $40.5 billion. This includes an anticipated 8.9% fall in 2025-26 in response to expected rate cuts that will lower the interest rates that non-bank lenders charge. In the coming years, non-bank lenders are set to tap into the commercial sector thanks to improving economic conditions. They will capitalise on commercial sector opportunities by presenting innovative solutions to diverse financial needs. A digital transformation trend within this industry is allowing better consumer service and competitiveness than traditional ADIs. Even so, competition is set to heighten as ADIs innovate and diversify their loan products. Notable examples include CommBank's Unloan and NAB's Green Finance for Commercial Real Estate. Emerging neobanks are adding to competitive pressures. As non-bank lenders gain prominence in Australia's financial system, regulatory bodies may ramp up their oversight to ensure financial stability. More stringent regulations will lift compliance costs for non-bank lenders in the short term, curbing their growth in the competitive financial services landscape. Overall, revenue is forecast to grow at an annualised 2.3% over the five years through 2030-31, to $45.5 billion.

The yield on Australia 5 Year Bond Yield rose to 3.60% on September 1, 2025, marking a 0.03 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.05 points, though it remains 0.05 points lower than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Australia 5 Year Note Yield - values, historical data, forecasts and news - updated on September of 2025.

Mortgage brokers have benefited from the relatively resilient Australian housing market in recent years. Factors like the previously record-low interest rates, government stimulus and surging residential housing prices have improved loan values and loan volumes for brokers. Stronger commissions for brokers have grown profit margins and raised wages in the industry. Notably, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industries levied significant scrutiny on the conduct of mortgage brokers. As a result of the Royal Commission, numerous lenders changed their remuneration models for brokers, and the government even introduced legislation intended to reform the core principles of the industry. These reforms, including a statutory duty to act in the best interest of the borrower, have had varying effects on brokers. Overall, the Mortgage Brokers industry is expected to grow at an annualised 10.6% over the five years through 2024-25, to total $6.2 billion. Subsequent rate hikes introduced by the RBA in response to inflationary pressures have had relatively marginal effects on residential housing prices despite rising residential housing loan rates and the growing unaffordability of mortgages in general. Nonetheless, an expected easing of residential loan rates is set to push up mortgage broker revenue by an estimated 12.9% in 2024-25. Larger brokers have focused on improving their network sizes to improve the scale of their operations. Firms have also reckoned with threats from disruptive fintech operators. Interest rates are set to continue tumbling over the coming years following the RBA's cash rate drop in February 2025. However, the potential for future rate hikes pushing the housing market to a breaking point could have disastrous effects on mortgage brokers. Continued government stimulus in the form of the proposed Help to Buy Scheme and the Housing Australia Future Fund is set to support housing affordability and supply without artificially lowering housing prices and thereby indirectly benefiting broker operations. Overall, industry revenue is forecast to expand at an annualised 3.5% through 2029-30 to total $7.3 billion.

Homeownership provides financial and emotional security and often represents an individual or family's most significant investment. House Construction industry contractors build single-unit (detached) dwellings or renovate and repair existing houses. Australia's solid population growth underpins the industry's performance. Still, a long-term shift in housing preferences towards constructing high-density apartments and townhouses has eroded revenue. House construction surged to a record peak in 2021-22 despite the pandemic restrictions and supply chain blockages impeding progress on construction projects. Homebuyers responded to record-low mortgage interest rates, favourable bank lending practices and the stimulus from the Federal Government's HomeBuilder scheme by unprecedented investment in new single-unit house construction and home renovations. As the housing market heated up, builders faced challenges juggling heavy workloads while dealing with supply bottlenecks, skill shortages and rising costs. The industry's revenue performance has taken a hit in recent years as housing investment slumped following the hike in mortgage interest rates as the RBA lifted official cash rates to quell inflation. Meanwhile, the HomeBuilder scheme wound down with the completion of funded projects. Industry revenue is expected to fall by 2.9% in 2024-25 and decline at an annualised 1.5% over the five years through 2024-25 to $76.1 billion. The industry's profit margins have suffered, partly reflecting the supply chain disruptions during the housing boom stemming from the COVID-19 restrictions. These bottlenecks delayed construction projects and inflated input prices for building materials, fuel, capital equipment and skilled labour. Fixed-price contracts and escalating input costs have pushed many homebuilders to the brink. Mounting population pressure and some easing in mortgage interest rates will support the moderate recovery in the industry's performance. Homebuilders may also derive some support from a commitment to construct 1.0 million new homes under the National Housing Accord. Still, much of the focus of residential building construction will shift towards high-density apartment and townhouse developments rather than single-unit houses. Industry revenue is forecast to climb at an annualised 1.4% to $81.6 billion through the end of 2029-30.

The benchmark interest rate in New Zealand was last recorded at 3 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Mortgage Rate in Australia decreased to 5.76 percent in June from 5.84 percent in May of 2025. This dataset includes a chart with historical data for Australia Mortgage Rate.

The yield on Australia 10Y Bond Yield rose to 4.34% on September 1, 2025, marking a 0.04 percentage point increase from the previous session. Over the past month, the yield has edged up by 0.07 points and is 0.32 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity. Australia 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on September of 2025.