Interest Rates in Australia: A Quick Recap of the 10 Years

Home/Interest Rates/Interest Rates in Australia: A Quick Recap of the 10 Years
  • Family Finance provides a range of options for home loans

A country’s economic stability and growth rate can be attributed to its interest rate. Japan’s current economic problems are proof of this statement. A shrinking economy and a near negative interest rate are clear indicators that the country’s economy is in serious trouble. The monetary history of a country is quite fascinating when looked at in this light, especially considering the rapidity of liquidity flow in the technological era. A slight dip in the interest rate can have investors in a flurry while having little effect on borrowers while a large decrease can encourage consumers and discourage investors. The interest rate has been wielded as a tool to control cash flow and inflation in the twenty-first century and is thus a very significant policy of any Central Bank.

But first: what is an interest rate? Simply put, interest is the price of capital. To most people, the interest rate is the rate of borrowing. It is how much interest you will have to pay back on a loan. Since lending is one of the main functions of a bank, the interest rate is of great consequence.

Next, who controls the interest rate? In Australia, the interest rate is controlled by the Reserve Bank of Australia. This is an autonomous body that is not accountable to the government or the people of Australia. In some countries the Central Bank is under the control of the government.

The Reserve Bank sets the cash rate, which is the money market interest rate, (meaning it is not adjusted for inflation), and banks typically add a margin of 1.8% to 2.5% to offset the effect of inflation.

Let’s start from 2006. The cash rate in Jan 2006 was 7.3. This would be considered pretty high right now. The cash rate hadn’t changed at the middle of the year: it remained 7.3 in July. At the end of year however, there was an increase. The new rate was 7.55.

In Jan 2007, the rate was 7.55, same as the month before. Middle of the year the rate was 8.05. That’s an increase of 1.05: pretty big! By the end of the year, the rate was still the same at 8.05.

In Jan 2008, the rate remained unchanged. It increased by July, to 8.70. The increase from July to December is unreal though: in December 2008 the rate was 9.45!

The following year, there were quite a few fluctuations. Starting at 9.45 in Jan 2009, the rate dipped to 5.95 in July. The rate dipped even further, and was 5.55 in December.

2010 was another year of volatility. The rate was 5.55 in Jan and by July it was 6.65. In December it increased yet again to 7.40.

From 2011 to 2012, the rate dipped and rose consistently between 7.79 and 6.60.

From 2012 onwards, there has been a steady decline. In Dec 2013, the rate was 5.53. In Dec 2014, the rate was 5.51.  In Dec 2015 the rate was 5.35. This rate has proved long-lasting: in April 2016, the rate was again 5.35.

As you can see, the interest rate has declined considerably these last few years. Fluctuations have also decreased, and the rates are proving more stable. What does that mean for the home loan market? It means you will have to pay less, and that you won’t have to worry about the rate increasing on you. So if you wanted to invest in property, it looks like now is a great time!

2019-07-04T20:44:41+10:00

38 Comments

  1. asmr https://0mniartist.tumblr.com April 10, 2021 at 6:26 pm - Reply

    What’s Taking place i’m new to this, I stumbled upon this
    I’ve discovered It absolutely helpful and it has aided me out loads.
    I am hoping to contribute & assist different customers like its
    helped me. Good job. 0mniartist asmr

  2. asmr https://0mniartist.tumblr.com April 10, 2021 at 6:41 pm - Reply

    Thank you for the auspicious writeup. It in fact was a amusement account it.
    Look advanced to more added agreeable from you! By
    the way, how could we communicate? asmr 0mniartist

  3. asmr https://0mniartist.tumblr.com April 11, 2021 at 12:21 am - Reply

    Hi terrific website! Does running a blog like this take a lot
    of work? I have absolutely no understanding of computer programming however I was hoping to start my own blog in the near future.

    Anyhow, should you have any ideas or techniques for new blog owners please share.
    I know this is off subject however I simply needed to ask.

    Many thanks! asmr 0mniartist

  4. asmr https://0mniartist.tumblr.com April 11, 2021 at 2:45 am - Reply

    Thanks a lot for sharing this with all of us you really recognise what you’re talking about!
    Bookmarked. Kindly additionally visit my site =).
    We will have a link trade agreement between us 0mniartist asmr

  5. asmr https://0mniartist.tumblr.com April 11, 2021 at 11:39 am - Reply

    I savour, cause I discovered just what I was having
    a look for. You’ve ended my 4 day long hunt!
    God Bless you man. Have a great day. Bye 0mniartist asmr

  6. asmr https://0mniartist.tumblr.com April 12, 2021 at 2:23 am - Reply

    I was very happy to uncover this web site. I want to to thank you for
    ones time just for this wonderful read!! I
    definitely really liked every part of it and i also have you saved to fav to look at new stuff on your site.

    0mniartist asmr

  7. 0mniartist April 12, 2021 at 6:19 am - Reply

    Great article. I will be dealing with some of these issues as well..
    0mniartist asmr

  8. 0mniartist April 12, 2021 at 6:49 am - Reply

    Hello! I could have sworn I’ve been to this site before
    but after reading through some of the post I realized
    it’s new to me. Nonetheless, I’m definitely delighted
    I found it and I’ll be book-marking and checking back
    often! asmr 0mniartist

  9. http://signup.com/ April 14, 2021 at 10:21 pm - Reply

    It’s appropriate time to make a few plans for the long run and it is
    time to be happy. I have read this publish and
    if I may just I desire to counsel you few attention-grabbing things or suggestions.
    Maybe you could write subsequent articles regarding this article.
    I desire to learn even more issues about it! asmr 0mniartist

  10. j.mp April 15, 2021 at 4:46 am - Reply

    Wonderful work! This is the type of info that are meant to be shared across
    the net. Disgrace on the seek engines for no
    longer positioning this post upper! Come on over and visit my web site .
    Thank you =) 0mniartist asmr

  11. j.mp April 15, 2021 at 5:52 am - Reply

    First of all I want to say superb blog! I had a quick question in which I’d like to ask if you do not mind.
    I was curious to know how you center yourself and clear your mind
    before writing. I have had trouble clearing my mind in getting my ideas out
    there. I do take pleasure in writing but it just seems like the first 10 to 15 minutes are generally wasted simply just trying to figure out how to begin. Any recommendations or tips?
    Many thanks! 0mniartist asmr

  12. http://j.mp/3gdNsnp April 16, 2021 at 5:06 am - Reply

    Undeniably believe that which you said. Your favorite reason seemed to be on the
    net the simplest thing to be aware of. I say
    to you, I definitely get annoyed while people think about worries that
    they just don’t know about. You managed to hit the nail upon the top as well as defined out the
    whole thing without having side-effects , people can take a
    signal. Will likely be back to get more. Thanks asmr 0mniartist

  13. http://j.mp/3ggaR7J April 16, 2021 at 7:39 am - Reply

    Hello, yeah this article is actually good and I have learned lot of things from it
    about blogging. thanks. 0mniartist asmr

  14. j.mp April 16, 2021 at 1:30 pm - Reply

    I am regular reader, how are you everybody? This paragraph posted
    at this website is genuinely nice. asmr 0mniartist

  15. http://j.mp/2RsEt7u April 16, 2021 at 4:26 pm - Reply

    Why viewers still use to read news papers when in this technological world
    all is available on web? 0mniartist asmr

  16. tinyurl.com April 16, 2021 at 4:50 pm - Reply

    For most recent news you have to go to see world wide web and on web I found this web site as a most excellent web page for most recent updates.
    asmr 0mniartist

  17. on asmr April 29, 2021 at 6:25 pm - Reply

    Yes! Finally something about a.

  18. when asmr April 29, 2021 at 6:32 pm - Reply

    Greetings from Carolina! I’m bored to death at
    work so I decided to check out your blog on my
    iphone during lunch break. I really like the information you provide here and can’t wait to take a look
    when I get home. I’m amazed at how fast your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyways, great blog!

  19. there gamefly May 4, 2021 at 7:55 am - Reply

    Wow, this article is pleasant, my sister is analyzing these
    things, therefore I am going to let know her.

  20. an asmr May 4, 2021 at 3:09 pm - Reply

    I think the admin of this site is genuinely
    working hard for his web page, for the reason that here every stuff
    is quality based information.

  21. http://j.mp/ May 7, 2021 at 9:08 pm - Reply

    I simply could not depart your site prior to suggesting that I
    extremely loved the standard info an individual provide in your guests?
    Is going to be back frequently in order to investigate cross-check new posts

  22. on asmr May 8, 2021 at 7:56 am - Reply

    Good day! This is my 1st comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading your blog posts.

    Can you recommend any other blogs/websites/forums that
    cover the same subjects? Thanks a ton!

  23. asmr when May 9, 2021 at 6:42 pm - Reply

    whoah this weblog is fantastic i like studying your articles.
    Stay up the great work! You already know, many people are hunting round for this info, you could aid them greatly.

  24. j.mp May 15, 2021 at 11:13 pm - Reply

    scoliosis
    What a information of un-ambiguity and preserveness of valuable know-how regarding unexpected emotions.
    scoliosis

  25. http://tinyurl.com May 16, 2021 at 9:46 pm - Reply

    scoliosis
    This design is incredible! You obviously know how to keep a
    reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job.
    I really enjoyed what you had to say, and more than that, how you presented it.
    Too cool! scoliosis

  26. tinyurl.com May 20, 2021 at 12:11 am - Reply

    scoliosis
    What a stuff of un-ambiguity and preserveness of precious familiarity on the topic of unexpected emotions.
    scoliosis

  27. https://785days.tumblr.com/ May 20, 2021 at 12:19 pm - Reply

    free dating sites
    whoah this blog is excellent i really like studying your posts.
    Keep up the good work! You already know, a lot of individuals are hunting around for this info, you
    could aid them greatly. free dating sites https://785days.tumblr.com/

  28. free dating sites
    Hello there! This article could not be written any better!
    Reading through this article reminds me of my previous
    roommate! He always kept preaching about this.
    I’ll send this article to him. Pretty sure he will have a very good read.
    I appreciate you for sharing! dating sites

  29. asmr on May 21, 2021 at 9:32 pm - Reply

    Asking questions are genuinely pleasant thing if you are not understanding something fully, except this paragraph gives fastidious
    understanding even.

  30. free dating sites it May 26, 2021 at 2:39 pm - Reply

    Hey there would you mind letting me know which web host you’re working
    with? I’ve loaded your blog in 3 completely different internet browsers and I must say this blog loads a lot faster then most.

    Can you recommend a good hosting provider at a honest price?

    Thanks, I appreciate it!

  31. why dating sites May 27, 2021 at 3:21 am - Reply

    Wow! At last I got a webpage from where I can genuinely
    get valuable information concerning my study and knowledge.

  32. free dating sites when May 29, 2021 at 7:43 pm - Reply

    What’s up it’s me, I am also visiting this website daily, this site
    is in fact pleasant and the users are really sharing pleasant thoughts.

  33. surgery scoliosis a May 31, 2021 at 1:50 am - Reply

    Great work! That is the kind of info that are meant to be shared around the net.
    Disgrace on the search engines for no longer positioning this publish upper!
    Come on over and seek advice from my site . Thanks =)

  34. but scoliosis surgery May 31, 2021 at 10:21 am - Reply

    I used to be able to find good advice from your content.

  35. free dating sites your June 1, 2021 at 2:56 am - Reply

    This post is invaluable. When can I find out more?

  36. dating sites is June 1, 2021 at 12:30 pm - Reply

    You can definitely see your enthusiasm in the work you write.
    The sector hopes for more passionate writers like you who are
    not afraid to say how they believe. All the time
    go after your heart.

  37. tinyurl.com June 1, 2021 at 10:27 pm - Reply

    Excellent blog here! Also your site loads up very fast!
    What web host are you using? Can I get your affiliate link to your host?

    I wish my site loaded up as quickly as yours lol

  38. http://tinyurl.com June 2, 2021 at 11:54 am - Reply

    Why visitors still make use of to read news papers when in this technological world everything is existing on web?

Leave A Comment