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.

A comparison of the Australian target cash rate and the overnight interbank lending rate shows that, after around a decade of being identical, the economic impact of the coronavirus (COVID-19) pandemic led to the actual overnight lending rate being lower than the Reserve Bank of Australia's target rate. This means that banks are lending to each other at lower rates than the "official" interest rate. One reason for this is the that the Reserve bank has made money available to banks in several new ways over this period (such as repo agreements where banks can pledge assets for short term funds), increasing liquidity in the banking system. As of June 2025, the overnight interbank cash rate and the target cash rate stood at **** and **** percent, respectively.

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

Track recent home loan rate cuts from 92 Australian banks affecting 459 products. Sourced from 8,959 home loan products. Top cuts: Bendigo Bank (-0.66%), IMB Bank (-0.20%), Adelaide Bank (-0.10%)

In September 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 September 2025, Russia maintained the highest interest rate at 17 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 -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 8 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.

Key information about Australia Long Term Interest Rate

• Australia Government Bond Yield: Australian Government: 10 Years was reported at 4.23 % pa in Oct 2025, compared with 4.30 % pa in the previous month.
• Australia Long Term Interest Rate data is updated monthly, available from Jul 1969 to Oct 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.

• In the latest reports, Australia Short Term Interest Rate: Month End: Bank Acceptance Bills Rates: 90 days was reported at 3.66 % pa in Nov 2025.
• The cash rate (Policy Rate: Month End: Cash Target Rate) was set at 3.60 % pa in Nov 2025.
• Australia Exchange Rate against USD averaged 1.53 (USD/AUD) in Oct 2025.

In a survey conducted in November 2024, around ** percent of homeowners with a mortgage stated that they are prepared for mortgage interest rates to remain at the current level into next year before potential rate cuts start. In contrast, approximately ** percent of homeowners and ** percent of investors claimed that they were not.

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

Interbank Rate in Australia remained unchanged at 3.60 percent in October. This dataset provides - Australia Three Month Interbank Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Real-time analysis of 8410 Australian home loan products. Track variable rates (6.21%), fixed rates (5.77%), Big 4 banks vs market, and lender comparisons.

Mortgage lenders are dealing with the RBA's shift to a tighter monetary policy, as it fights heavy inflation. Since May 2022, the RBA has raised the benchmark cash rate, which flows to interest rates on home loans. This represents a complete reversal of the prevailing approach to monetary policy taken in recent years. Over the course of the pandemic, subdued interest rates, in conjunction with government incentives and relaxed interest rate buffers, encouraged strong mortgage uptake. With the RBA's policy reversal, authorised deposit-taking institutions will need to balance their interest rate spreads to ensure steady profit. A stronger cash rate means more interest income from existing home loans, but also steeper funding costs. Moreover, increasing loan rates mean that prospective homeowners are being cut out of the market, which will slow demand for new home loans. Overall, industry revenue is expected to rise at an annualised 0.4% over the past five years, including an estimated 2.2% jump in 2023-24, to reach $103.4 billion. APRA's regulatory controls were updated in January 2023, with new capital adequacy ratios coming into effect. The major banks have had to tighten up their capital buffers to protect against financial instability. Although the ‘big four’ banks control most home loans, other lenders have emerged to foster competition for new loanees. Technological advances have made online-only mortgage lending viable. However, lenders that don't take deposits are more reliant on wholesale funding markets, which will be stretched under a higher cash rate. Looking ahead, technology spending isn't slowing down, as consumers continue to expect secure and user-friendly online financial services. This investment is even more pressing, given the ongoing threat of cyber-attacks. Industry revenue is projected to inch upwards at an annualised 0.8% over the five years through 2028-29, to $107.7 billion.

The Wage Price Index basically tells us how much wages are growing across the economy, without getting skewed by things like bonuses. It's a key measure of inflation pressures from labor costs.

Revenue in the Business Financing industry has been highly volatile over the past five years, reflecting swings in interest rates, investment appetite and economic conditions. Industry revenue has grown strongly at an annualised rate of 16.9% through the end of 2025-26, with lenders benefiting from the Reserve Bank of Australia’s rapid rate hikes during 2022-23. Higher lending rates significantly lifted the value of repayments and widened net interest margins, pushing revenue to an estimated $83.1 billion in 2025-26. However, this includes an estimated 6.8% decline in 2025-26, as early interest rate cuts and softer business confidence begin to reduce repayment values and dampen new borrowing activity. Profit margins have narrowed even as revenue surged. Intense competition from fintech lenders and neobanks has forced traditional banks and non-bank financiers to invest heavily in digital platforms, compliance and cybersecurity. These outlays, combined with rising loan loss provisions as arrears edged higher, have weighed on profitability. Margins that exceeded 20% earlier in the decade are now sitting closer to the low teens, underscoring the pressures on earnings despite revenue growth. The challenge for banks is balancing competitive pricing and digital innovation against the rising cost of compliance and risk management. Looking ahead, revenue is forecast to rise modestly at an annualised 1.0% through the end of 2030-31, reaching $87.4 billion. Lower interest rates are projected to constrain repayment values, keeping revenue growth subdued compared with the recent past. At the same time, greater use of retained earnings among large corporates and tighter risk standards for SMEs will limit loan growth. However, opportunities remain in sectors like logistics, health care and renewable energy, where businesses are investing in productivity gains and transition projects. Profitability is set to remain under pressure as lenders contend with high compliance costs and more cautious underwriting, but financers that adapt their products to support digital transformation and capital investment will be best placed to capture demand.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for Australia (IRLTLT01AUM156N) from Jul 1969 to Sep 2025 about long-term, Australia, 10-year, bonds, yield, government, interest rate, interest, and rate.

Consumer Price Index measuring changes in the cost of living. Both headline and core (trimmed mean) inflation are measured quarterly, comparing to the same quarter last year.

The Foreign Banks industry includes domestic subsidiaries of foreign banks and branches of foreign banks, which have grown over the past few years as soaring interest rates contributed to a sharp revenue rise. The Reserve Bank of Australia (RBA) maintained a relatively low cash rate over the past decade – especially in response to the pandemic – to stimulate economic activity. The low cash rate environment hampered foreign banks' revenue in the three years through 2021-22. In May 2022, this all changed when inflation rose quickly, leading to the fastest and largest hike cycle on record. These trends ensured a revenue explosion in the two years through 2023-24, especially after a decade of cheap money drove extensive private and corporate borrowing in Australia. Overall, industry revenue is expected to grow at an annualised 11.8% over the five years through 2024-25, to $45.6 billion. This includes an anticipated decline of 8.8% in 2024-25 as the RBA cut rates. Foreign banks are typically less exposed than domestic banks to the residential lending market and depend more on commercial lending because of the high number of foreign bank branches, with the noted exception of HSBC Bank, which has substantially grown its mortgage books over the past few years. Meanwhile, foreign bank branches increasingly lent to corporate clients despite a highly competitive market. These long-term trends allowed industry profit margins to heighten. Yet, as interest rates surged in 2022, so did foreign banks’ funding expenses. This weighed on profit’s proportion of revenue despite net earnings growth. Australian foreign banks’ outlook is more mixed over the coming years as interest rates gradually drop. Foreign banks are set to shift their focus towards ESG offerings like responsible lending, to satisfy consumer demand for green loans. In response to the fierce competition from lenders, including non-banks and fintech firms, foreign banks are set to splurge on technology to remain relevant. Funding costs will start easing as interest rates decline, causing profit margins to rebound. Overall, revenue is forecast to fall at an annualised 3.8% over the five years through 2029-30, to $37.8 billion.

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.

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.

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.

Bank Bill Swap Rate in Australia increased to 3.67 percent on Monday December 1 from 3.66 in the previous day. This dataset includes a chart with historical data for Australia Bank Bill Swap Rate.