--- source: Reserve Bank of Australia url: https://www.rba.gov.au/chart-pack/ document_type: pdf date_retrieved: 2026-03-18 period: March 2026 parent_publication: Chart Pack indicators_covered: [Interest Rate, Cash Rate Target, Monetary Policy] data_as_at: 2026-03-12 --- # The Australian Economy and Financial Markets — Chart Pack | March 2026 **Released on 18 March 2026** **Data as at 12 March 2026.** © Reserve Bank of Australia 2026 ## Interest Rates ### Policy Interest Rates The Australian Cash Rate Target is the primary policy instrument of the Reserve Bank of Australia's Board. The official interest rate is the cash rate. The cash rate is the rate charged on overnight loans between financial intermediaries, and is determined in the money market as a result of the interaction of demand for and supply of overnight funds. The cash rate and 90-day bill yield are presented in the context of real cash rate calculations, which use average year-ended weighted median inflation and year-ended trimmed mean inflation. The cash rate target represents the RBA's primary monetary policy setting. ### 10-year Australian Government Bond Yield The 10-year Australian government bond yield represents the medium-term interest rate environment. The spread between the Australian 10-year bond yield and the cash rate target captures the term premium and market expectations for future monetary policy settings. ### Australian Non-financial Corporate Bond Yields Three-year target spreads to government yields for Australian corporations by rating: - **BBB corporates:** Higher spreads reflecting credit risk - **A-rated corporates:** Lower spreads than BBB - **AA-rated corporates:** Lowest spreads among investment-grade corporates ### Housing Interest Rates The housing lending rate environment comprises both fixed-rate and variable-rate loans: **Outstanding Loans:** - Owner-occupier loans split between principal-and-interest and interest-only structures - Investor housing loans tracking separately - Weighted average interest rates across all fixed-rate periods - Series break in July 2019; thereafter data based on EFS (Economic and Financial Statistics) collection **New Housing Loans:** - New fixed-rate and variable-rate loan volumes tracked separately - Major banks' standard variable rates for owner-occupier variable-rate loans ### Australian Business Lending Rates Average interest rate on business credit outstanding, categorized by: - Small loans (less than $2 million) - Large loans ($2 million or more) - Smaller loans to SMEs (annual turnover less than $75 million, lender exposure less than $1.5 million) - Larger loans to SMEs (annual turnover less than $75 million, lender exposure $1.5 million or more) - Loans to large businesses (annual turnover $75 million or more) ## Australian Growth ### GDP Growth Year-ended and quarterly measures show Australian economic growth dynamics. Contributions to GDP growth include: - Household consumption - Dwelling investment - Business investment - Public consumption - Public investment - Change in inventories - Exports (net of import flows) The December 2025 snapshot captures growth momentum across these components. ## Australian Inflation ### Consumer Price Inflation Year-ended and quarterly collection of CPI data, adjusted for: - Tax changes of 1999–2000 - Interest charges (excluded prior to September 1998) - Deposit and loan facilities (excluded prior to September 2011) ### Measures of Underlying Inflation Three core inflation measures track the inflation trend: - **Weighted Median:** Price of the item at the 50th percentile when all items are ranked by price change - **Trimmed Mean:** Average price change excluding the highest and lowest 15% of price changes - **CPI excl. volatile items:** CPI excluding items subject to large temporary movements ## Household Sector ### Household Income and Consumption Real year-ended growth in: - Household consumption - Disposable income (after tax and interest payments) - Household saving ratio (net of depreciation) ### Private Residential Building and Dwelling Investment - **Building Approvals:** Monthly detached houses and higher-density housing approvals - **Dwelling Investment:** Chain volume measures, reference year 2023/24 ### Housing Prices and Household Debt Ratios to household disposable income: - Housing price index (monthly hedonic price index, non-seasonally adjusted) - Household debt levels - Year-ended growth in housing prices ## Business Sector ### Capital Expenditure Nominal and share-of-GDP measures for: - Mining capital expenditure - Non-mining business investment - Firms' expectations for 2025/26 and 2026/27 ### Business Investment Components Share of nominal GDP: - Buildings - Machinery and equipment - Other business services (including intellectual property products) ### Business Conditions and Confidence NAB Business Survey net balance measures: - Business confidence (deviation from average since 1989) - Business conditions (deviation from average since 1989) - Capacity utilisation ## Labour Market ### Employment and Participation Rates Trend measures (seasonally adjusted): - **Participation rate:** Share of working-age population in the labour force - **Employment-to-population ratio:** Share of working-age population employed - **Total hours worked:** Combined measure of employment and average hours ### Labour Underutilisation Rates Heads-based per cent of labour force: - **Unemployment rate:** Share of labour force not employed but actively seeking work - **Underemployment rate:** Employed people who want and are available to work more hours - **Underutilisation rate:** Sum of unemployment and underemployment rates ## Commodity Prices ### RBA Index of Commodity Prices SDR-denominated index with 2023/24 average = 100: - Broad commodity price index tracking world demand for Australian commodity exports ### Bulk Commodity Prices Average Australian export prices: - **Iron ore:** US$/tonne (major export) - **Thermal coal:** US$/tonne - **Coking coal:** US$/tonne ## Balance of Payments ### Exports by Destination Annual share of total values: - China (largest market) - Japan - South Korea - India - United States - United Kingdom - Rest of world ### Current Account Balance Per cent of nominal GDP: - **Trade balance:** Exports minus imports of goods and services - **Net income balance:** Investment income flows - **Current account balance:** Net of all current account transactions ## Central Bank Balance Sheets ### RBA Assets and Liabilities **Assets:** - Domestic bonds - Gold and foreign exchange - Open repo and other assets - OMO repo - Term funding facility (TFF) **Liabilities:** - Banknotes in circulation - Exchange settlement balances - Government and other deposits - Capital and reserve bank reserve fund ### Central Bank Government Bond Holdings Per cent of eligible stock outstanding across major central banks: - Japan: ~50% (highest holdings) - Sweden: ~25% - Euro area: ~20% - UK: ~15% - Canada: ~10% - Australia: ~10% - US: ~5% - New Zealand: Minimal holdings ## Banking Indicators ### Australian Bank Profits **Net Profit After Tax:** - Major banks: Largest profit contributors - Other Australian-owned banks: Secondary institutions - Foreign-owned banks: Lower profit contribution ### Return on Shareholders' Equity Profitability measure: - Major banks: ~17–20% ROE - Other Australian-owned banks: Varying returns - Foreign-owned banks: Generally lower returns ### Banks' Non-performing Loans Consolidated global operations: - **Non-performing loans:** Share of loans and advances - Composition: Housing (63%), Business (34%), Personal (3%) ### Capital Ratios Per cent of risk-weighted assets: - **Total capital ratio:** Tier 1 and Tier 2 capital - **Tier 1 ratio:** Core capital - **CET1 ratio:** Common Equity Tier 1 (highest quality capital) ### Funding Composition Share of total funding: - **Domestic deposits:** ~50% - **Short-term debt:** ~30% - **Long-term debt:** ~15% - **Securitisation:** Asset-backed securities - **Equity:** Shareholders' funds --- **Copyright:** © Reserve Bank of Australia 2026. 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