Interest Rates

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Interest Rates


Movements in official interest rates are determined by the RBA. Their objective is to ensure that price growth (inflation) remains low and stable and it uses ‘monetary policy’ to do this.

Monetary policy involves either increasing the cost of money (interest rates) to slow the economy down, or lowering the cost of money to encourage spending which promotes economic growth.

Information in this document is based on current regulatory requirements and laws, as at 1 July 2020, which may be subject to change.

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