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

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.

From 2003 to 2025, the central banks of the United States, United Kingdom, and European Union exhibited remarkably similar interest rate patterns, reflecting shared global economic conditions. In the early 2000s, rates were initially low to stimulate growth, then increased as economies showed signs of overheating prior to 2008. The financial crisis that year prompted sharp rate cuts to near-zero levels, which persisted for an extended period to support economic recovery. The COVID-19 pandemic in 2020 led to further rate reductions to historic lows, aiming to mitigate economic fallout. However, surging inflation in 2022 triggered a dramatic policy shift, with the Federal Reserve, Bank of England, and European Central Bank significantly raising rates to curb price pressures. As inflation stabilized in late 2023 and early 2024, the ECB and Bank of England initiated rate cuts by mid-2024. Moreover, the Federal Reserve also implemented its first cut in three years, with forecasts suggesting a gradual decrease in all major interest rates between 2025 and 2026. Divergent approaches within the European Union While the ECB sets a benchmark rate for the Eurozone, individual EU countries have adopted diverse strategies to address their unique economic circumstances. For instance, Hungary set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by October 2024. In contrast, Sweden implemented more aggressive cuts, lowering its rate to 2.15 percent by October 2025, the lowest among EU members. These variations highlight the complex economic landscape that European central banks must navigate, balancing inflation control with economic growth support. Global context and future outlook The interest rate changes in major economies have had far-reaching effects on global financial markets. Government bond yields, for example, reflect these policy shifts and investor sentiment. As of October 2025, the United States had the highest 10-year government bond yield among developed economies at 4.09 percent, while Switzerland had the lowest at 0.27 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

On November 8, 2023, the Reserve Bank of Australia (RBA) increased the interest rate by **** percentage points, bringing the interest rate to **** percent. This was the thirteenth interest rate increase by the RBA since November 4, 2020, which saw the interest rate drop to a record *** percent.

The benchmark interest rate in the United States was last recorded at 4 percent. This dataset provides the latest reported value for - United States Fed Funds Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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.

New Zealand RBNZ Forecast: Offical Cash Rate: 1 Year Ahead data was reported at 3.230 % pa in Mar 2025. This records a decrease from the previous number of 3.330 % pa for Dec 2024. New Zealand RBNZ Forecast: Offical Cash Rate: 1 Year Ahead data is updated quarterly, averaging 1.870 % pa from Sep 2017 (Median) to Mar 2025, with 31 observations. The data reached an all-time high of 5.160 % pa in Sep 2023 and a record low of -0.160 % pa in Dec 2020. New Zealand RBNZ Forecast: Offical Cash Rate: 1 Year Ahead data remains active status in CEIC and is reported by Reserve Bank of New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.M004: Cash Rate: Forecast: Reserve Bank of New Zealand.

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.

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 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.

Graph and download economic data for Interest Rate on Reserve Balances (IORB Rate) (IORB) from 2021-07-29 to 2025-12-01 about reserves, interest rate, interest, rate, and USA.

Context

The Federal Reserve sets interest rates to promote conditions that achieve the mandate set by the Congress — high employment, low and stable inflation, sustainable economic growth, and moderate long-term interest rates. Interest rates set by the Fed directly influence the cost of borrowing money. Lower interest rates encourage more people to obtain a mortgage for a new home or to borrow money for an automobile or for home improvement. Lower rates encourage businesses to borrow funds to invest in expansion such as purchasing new equipment, updating plants, or hiring more workers. Higher interest rates restrain such borrowing by consumers and businesses.

Content

This dataset includes data on the economic conditions in the United States on a monthly basis since 1954. The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. The rate that the borrowing institution pays to the lending institution is determined between the two banks; the weighted average rate for all of these types of negotiations is called the effective federal funds rate. The effective federal funds rate is determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate; the target rate transitioned to a target range with an upper and lower limit in December 2008. The real gross domestic product is calculated as the seasonally adjusted quarterly rate of change in the gross domestic product based on chained 2009 dollars. The unemployment rate represents the number of unemployed as a seasonally adjusted percentage of the labor force. The inflation rate reflects the monthly change in the Consumer Price Index of products excluding food and energy.

Acknowledgements

The interest rate data was published by the Federal Reserve Bank of St. Louis' economic data portal. The gross domestic product data was provided by the US Bureau of Economic Analysis; the unemployment and consumer price index data was provided by the US Bureau of Labor Statistics.

Inspiration

How does economic growth, unemployment, and inflation impact the Federal Reserve's interest rates decisions? How has the interest rate policy changed over time? Can you predict the Federal Reserve's next decision? Will the target range set in March 2017 be increased, decreased, or remain the same?

Key information about United States Short Term Interest Rate

• United States Short Term Interest Rate: Month End: Treasury Bills: 3 Months was reported at 4.20 % pa in Feb 2025, compared with 4.20 % pa in the previous month.
• US Short Term Interest Rate data is updated monthly, available from Jan 1954 to Feb 2025.
• The data reached an all-time high of 15.52 % pa in Aug 1981 and a record low of -0.01 % pa in Sep 2015.
• Short Term Interest Rate is reported by reported by Federal Reserve Board.

CEIC calculates monthly Short Term Interest Rate from daily Treasury Bills. Federal Reserve Board provides Treasury Bills. Short Term Interest Rate prior to December 1979 is sourced from the Federal Reserve Bank of St. Louis.


Related information about United States Short Term Interest Rate

• In the latest reports, US Treasury Notes Yield: Constant Maturity: Nominal: 10 Years was reported at 4.45 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Effective Federal Funds Rate) was set at 4.33 % pa in Feb 2025.

Graph and download economic data for Interest Rates: Immediate Rates (< 24 Hours): Central Bank Rates: Total for India (IRSTCB01INM156N) from Jan 1968 to Dec 2023 about overnight, India, interest rate, banks, depository institutions, interest, and rate.

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.

This dataset tracks the policy interest rates of the world’s top 8 central banks from 1980 to 2025, offering a unique longitudinal view into global monetary trends. Central banks included are: the Federal Reserve (USA), European Central Bank (ECB), Bank of England (BoE), Bank of Japan (BoJ), Bank of Canada (BoC), Reserve Bank of Australia (RBA), Swiss National Bank (SNB), and Sveriges Riksbank (Sweden). Note: The ECB's data begins in 1999, aligning with its establishment.

Ideal for time-series analysis, forecasting, and macroeconomic research, this dataset can be used to study inflation targeting regimes, financial crises, and policy divergence/convergence across developed economies.

Overview with Chart & Report: Reserve Bank of Australia (RBA) Interest Rate Decision is one of the key instruments of the national monetary and credit policy. RBA board members hold regular meetings after which the bank publishes

The benchmark interest rate in India was last recorded at 5.50 percent. This dataset provides - India Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The 'RBA Interest Rate Decision' is a monetary policy event where the Reserve Bank of Australia (RBA) sets the official cash rate, influencing borrowing costs and economic activity.

The H.10 weekly release contains daily rates of exchange of major currencies against the U.S. dollar. The data are noon buying rates in New York for cable transfers payable in the listed currencies. The rates have been certified by the Federal Reserve Bank of New York for customs purposes as required by section 522 of the amended Tariff Act of 1930.

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.

This report analyses the Official Cash Rate (OCR) of the Reserve Bank of New Zealand (Te Putea Matua). The main objective of the OCR is to maintain price stability (between 1-3% inflation) and support sustainable full employment. The RBNZ influences market interest rates and the cost of borrowing and lending money through its OCR decisions. Interest rates affect the level of household and business spending, which has an impact on the prices of goods and services. The RBNZ generally reviews the OCR every six weeks. The data for this report is sourced from the Reserve Bank of New Zealand and is presented as the average rate over each financial year.