RBA Cash Rate: methodology

What this metric measures

The Reserve Bank’s target for the overnight cash rate, the interest rate that anchors mortgage and business lending, shown as the monthly average.

Why it matters: The cash rate is the RBA’s main lever for managing inflation and demand. Every change flows through to mortgage repayments and the cost of borrowing.

Source & provenance

Publisher

RBA

Update frequency

monthly

Licence

CC BY 4.0

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How the score is computed

The score is a 0–100 normalisation of the latest observation, compared to a baseline window. The traffic-light rating (RAG) reflects both the absolute level and the recent trend.

Direction

Lower is better

Trend window

24 months

Baseline

Last 10 years

{
  "red_min_pct_of_baseline": 110,
  "amber_max_pct_of_baseline": 110,
  "green_max_pct_of_baseline": 95
}