Financial Report Insights

Australia interest rate

Reserve Bank of Australia

Policy rate
4.35%
Sep 17, 2026
Last move
+0.25 pt
May 2026
Inflation
3.5%
Jul 2026
10-year bond yield
5.01%
Aug 2026

The policy rate set by the Reserve Bank of Australia is 4.35% as of Sep 17, 2026. Its most recent move: it raised its rate from 4.10% to 4.35% (May 2026). The rate is 0.75 percentage points higher than a year earlier. With consumer prices up 3.5% over the 12 months to Jul 2026, the real rate (policy rate minus inflation) is +0.9%: borrowing costs are above inflation.

Policy rate over the past two years

Aug 2024Sep 17, 2026
Sep 17, 2026: 4.35%

Rate changes

WhenDecisionFromToChange
May 2026Hike4.10%4.35%+0.25 pt
Mar 2026Hike3.85%4.10%+0.25 pt
Feb 2026Hike3.60%3.85%+0.25 pt
Aug 2025Cut3.85%3.60%−0.25 pt
May 2025Cut4.10%3.85%−0.25 pt
Feb 2025Cut4.35%4.10%−0.25 pt

Changes between month-end rates, plus the latest daily reading. Two decisions in one month show up as a single change.

Inflation (% vs a year earlier)

Apr 2025Jul 2026
Jul 2026: 3.5%

10-year government bond yield

Jan 2026Aug 2026
Aug 2026: 5.01%

Other central banks in Oceania

Source: BIS; inflation: IMF CPI; bond yield: OECD. Updated daily. All central bank rates · Australia economy dashboard