The Australian Economy and

Financial Markets
Chart Pack | November 2021
The Australian Economy and Financial Markets
Contents
World Economy 1
Australian Growth 4
Australian Inlation 5
Household Sector 6
Business Sector 8
Credit and Money 11
Factors of Production and Labour Market 12
Regions and Industry 14
Government 15
Commodity Prices 16
Balance of Payments and External Position 17
Central Bank Balance Sheets and Bond Purchases 19
Interest Rates 20
Share Markets 25
Bond Issuance 26
Exchange Rates 28
The Australian Economy and Financial Markets 30
© Reserve Bank of Australia 2021

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World Economy
GDP Growth – World GDP Growth – China and India
Year-ended Year-ended
% % % %

20 20
10 10
Major trading partners* China
10 10
5 5
India
0 0
World**
0 0
-10 -10

-5 -5
-20 -20

-10 -10 -30 -30

2005 2009 2013 2017 2021 2009 2013 2017 2021
* Weighted using Australian export shares Sources: CEIC Data; RBA
** PPP-weighted; accounts for 85 per cent of world GDP
Sources: ABS; CEIC Data; IMF; RBA; Refinitiv

GDP Growth – Advanced Economies GDP Growth – East Asia

Year-ended Year-ended
% % % %

10 10 12 12
Japan Indonesia
US Euro area
5 5 6 6

South Korea
0 0 0 0

Malaysia
-5 -5 -6 -6

-10 -10 -12 -12

-15 -15 -18 -18

2005 2009 2013 2017 2021 2005 2009 2013 2017 2021
Source: Refinitiv Sources: CEIC Data; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 1
 W O R L D E CO N O M Y

Inflation – Advanced Economies* Inflation – China and India

Year-ended Year-ended
% % % %
India
US
4 4 15 15
Euro area

2 2 10 10

0 0 5 5
Japan

-2 -2 0 0

China
-4 -4 -5 -5
2005 2009 2013 2017 2021 2005 2009 2013 2017 2021
* Personal consumption expenditure (PCE) inflation for the US; Japan Source: CEIC Data
data excludes the effects of the consumption tax increase in April 2014
Sources: RBA; Refinitiv

Labour Markets – Advanced Economies Inflation – East Asia

% Unemployment rate % Year-ended
12 12 % %
Euro area Indonesia
8 8
15 15
US
4 4

10 10
% Wages growth* %
Year-ended

5 5 5 5

0 0
Japan 0 0
Malaysia South Korea
-5 -5
2009 2013 2017 2021
-5 -5
* Average hourly earnings for the US; compensation per employee for 2005 2009 2013 2017 2021
the euro area; smoothed full-time base wages for Japan
Sources: CEIC Data; RBA; Refinitiv Sources: CEIC Data; RBA; Refinitiv

C H A R T PA C K | N O V E M B E R 2 0 2 1 2
 W O R L D E CO N O M Y

China – Activity Indicators China – Residential Property Indicators

Year-ended growth Year-ended growth
index Manufacturing PMI* Industrial production % % New property prices Investment** %
70 40
Alternative*
15 25
60 20 Land purchases

50 0
0 0
40 -20 Official
Other investment***
% Fixed asset investment Real retail sales % % Floor space sold Inventory %
40 20
60 25
20 10
0 0
0 0
-20 -10
-40 -20 -60 -25
2011 2016 2021 2011 2016 2021 2017 2021 2017 2021
* Diffusion index; average of the official and Caixin * China Index Academy
Sources: CEIC Data; Markit Economics; RBA ** Contributions of residential and non-residential investment
*** Construction, installation, equipment purchases and other
Sources: CEIC Data; CIA; CRIC; RBA

China – Total Social Financing Growth China – Gross Output of Selected Products*
Year-ended with contributions 2006 average = 100
% % index index

300 300
30 30
Electricity generation Steel products
Household loans
Business financing*
250 250
Government bonds**
Plate glass
20 20 200 200

Crude steel
150 150
10 10 Cement

100 100

0 0
2009 2012 2015 2018 2021 50 50
* 2011 2016 2021 2011 2016 2021
Sum of business loans, securities financing and off-balance sheet
financing * Seasonally adjusted by the RBA
** Net government bond issuance includes local government bond Sources: CEIC Data; RBA
issuance to pay off debt previously classified as business financing,
and uses RBA estimates prior to 2016
Sources: CEIC Data; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 3
Australian Growth
GDP Growth Contributions to GDP Growth
% % Year-ended
ppt ppt
June 2021

8 8

Year-ended 8 8
4 4

4 4
0 0
Quarterly

-4 -4 0 0

-8 -8
1996 2001 2006 2011 2016 2021 -4 -4

GDP

Consumption

investment

investment

Non-mining

Government

Exports

Imports
investment
Dwelling
Source: ABS

Mining
Sources: ABS; RBA

Mining and Non-mining Activity State Final Demand

Year-ended growth, RBA estimates Year-ended growth
% Mining* % % %
Mining investment WA
20 20
Resource exports 15 15
10 10
10 10
0 0
5 5
% Non-mining %
10 10 0 0
NSW and Vic
5 5 Rest of Australia
-5 -5
0 0
-10 -10
-5 -5
-10 -10 -15 -15
2005 2009 2013 2017 2021 2001 2006 2011 2016 2021
* Net of mining-related imports; components are contributions to Sources: ABS; RBA
year-ended mining activity growth; contribution from changes in
inventories not shown
Sources: ABS; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 4
Australian Inflation
Consumer Price Inflation* Measures of Underlying Inflation*
% % Year-ended
Year-ended % %
4 4 Weighted median
5 5
3 3
Trimmed mean
4 4
2 2

1 1 3 3

0 0 2 2
Quarterly
(seasonally adjusted) CPI excl volatile items
-1 -1
1 1

-2 -2
1996 2001 2006 2011 2016 2021 0 0
* Excludes interest charges prior to the September quarter 1998; 1996 2001 2006 2011 2016 2021
adjusted for the tax changes of 1999–2000 * Excludes interest charges prior to September 1998 and deposit & loan
Sources: ABS; RBA facilities prior to September 2011; adjusted for 1999–2000 tax changes
Sources: ABS; RBA

Tradable and Non-tradable Inflation*

% Non-tradables** %

4 4
Year-ended
2 2

0 0
Quarterly
(seasonall adjusted)
% Tradables excl volatiles %

4 4

2 2

0 0

-2 -2
1996 2001 2006 2011 2016 2021
* Ad
usted for the ta changes of Ð000
** Ecludes interest charges and indirect deposit & loan facilities
Sources: ABS; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 5
Household Sector
Household Income and Consumption* Consumer Sentiment*
% Real, year-ended growth % Average since 1980 = 100
Consumption index index
8 8

0 0
Disposable income
-8 -8
100 100

% Saving ratio %

16 16

8 8 85 85

0 0

-8 -8
1991 1997 2003 2009 2015 2021 70 70
* Household sector includes unincorporated enterprises; disposable 2009 2012 2015 2018 2021
income is after tax and interest payments; saving ratio is net of * Average of the ANZ-Roy Morgan and Westpac-Melbourne Institute
depreciation
consumer sentiment measure of respondents’ perceptions of their
Sources: ABS; RBA personal finances relative to the previous year; ANZ-Roy Morgan
index rescaled to have the same average as the Westpac-Melbourne
Institute index since 1996
Sources: ANZ-Roy Morgan; RBA; Westpac and Melbourne Institute

Private Dwelling Investment* Private Residential Building Approvals

Chain volume, quarterly Monthly
$b $b ’000 ’000

20 20
24 24 Detached houses
Total
16 16

18 18 12 12

8 8
12 12
4 4
Higher-density housing
6 6 0 0
1991 1996 2001 2006 2011 2016 2021 1991 1996 2001 2006 2011 2016 2021
* Reference year is 2018/19 Source: ABS
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 6
 H O U S E H O L D S E C TO R

Housing Prices and Household Debt* Household Wealth and Liabilities*

Ratio to household disposable income Per cent of annual household disposable income
ratio ratio % %
Housing prices Household debt

800 800
5 2.0
Net wealth

600 600
4 1.5 Dwellings

400 400

3 1.0
Financial assets
200 200

Liabilities
2 0.5 0 0
1991 2006 2021 1991 2006 2021 1996 2001 2006 2011 2016 2021
* Household disposable income is after tax, before the deduction of * Household disposable income is after tax, before the deduction of
interest payments, and includes income of unincorporated enterprises interest payments, and includes income of unincorporated enterprises
Sources: ABS; CoreLogic; RBA Sources: ABS; RBA

Housing Prices Housing Loan Commitments*

Year-ended growth, seasonally adjusted Excluding refinancing
% % $b $b
ABS*
15 15 30 30
APM***
25 25
10 10 Total
20 20
Residex*
5 5
15 15
0 0 Owner-occupier
10 10
-5 -5
CoreLogic** 5 5
Investor
-10 -10
2009 2012 2015 2018 2021 0 0
2005 2009 2013 2017 2021
* ABS is a quarterly stratified median price index; Residex is a quarterly
* Seasonally adjusted
repeat sales price index
** Monthly hedonic price index; non-seasonally adjusted Sources: ABS; RBA
*** Quarterly stratified median price index
Sources: ABS; APM; CoreLogic; RBA; Residex

C H A R T PA C K | N O V E M B E R 2 0 2 1 7
Business Sector
Business Investment* Capital Expenditure – Mining and Non-mining*
Share of nominal GDP Nominal, log scale
% % $b $b
Mining Non-mining
128 128
18 18
64 64

16 16 32 32

16 16
1 1

8 8
12 12
4 4

10 10 2 2
1991 1997 2003 2009 2015 2021 93 / 94 07 / 08 21 / 22 93 / 94 07 / 08 21 / 22
* Dots are firms’ expectations for 2021/22; adjusted for historical
* Adjusted for second-hand asset transfers between the priate and
other sectors differences between expected and realised spending
Source: ABS Sources: ABS; RBA

Business Investment Components* Industry Share of Business Investment*

Share of nominal GDP % %
% %
50 50
Machinery and equipment
8 8 Manufacturing Mining
40 40
Financial and Retail and
6 6 insurance services wholesale trade
30 30
Other business
services** Construction
4 4 20 20
Buildings
Agriculture
10 10
2 2
Engineering
0 0
0 0 94 / 95 99 / 00 04 / 05 09 / 10 14 / 15 19 / 20
1991 1997 2003 2009 2015 2021 * Nominal; includes second hand asset transfers
* Adjusted for second-hand asset transfers between the private and ** Includes: information media and telecommunications; rental, hiring
other sectors and real estate services; professional, scientific and technical services;
Source: ABS administrative and support services
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 8
 B U S I N E S S S E C TO R

Private Non-financial Corporation Profits* NAB Business Survey

Share of nominal GDP ppt Business conditions* ppt
% % 20 20

0 0
16 16
Non-mining -20 -20

12 12 -40 -40

ppt Business confidence* ppt

8 8
Mining 0 0

4 4 -30 -30

-60 -60
0 0
2001 2006 2011 2016 2021
* Gross operating profits; inventory valuation adjusted % Capacity utilisation %
Sources: ABS; RBA
84 84

80 80
Lending to Business* Average since 1989
76 76
Break-adjusted
$b $b 72 72
Exposures data EFS data

68 68
1991 1996 2001 2006 2011 2016 2021
600 600
* Net balance; deviation from average since 1989
Sources: NAB; RBA

400 400

Large business

200 200
Medium business
Small business

0 0
2013 2017 2021 2019 2021
* Exposures data capture credit exposures on the balance sheets of
banks allowed by APRA to use an internal ratings-based approach
for credit risk management; EFS data are based on reporting of banks
and finance companies that have $2 billion or more of business credit
Sources: APRA; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 9
 B U S I N E S S S E C TO R

Business Lending Rates Lending to Businesses

Average interest rate on credit outstanding Not seasonally adjusted, break-adjusted
% % $b $b
Small business Medium business Large business Small business Medium business Large business

600 600
6 6
Fixed-rate

450 450
4 4
Secured by
residential 300 300
property*
Variable-rate
2 2
150 150

0 0 0 0
2019 2021 2019 2021 2019 2021 2019 2021 2019 2021 2019 2021
* Small business loans secured by residential property can have fixed Secured (other) Unsecured
or variable interest rate terms and are included in the fixed-rate and Secured (residential property) Secured
variable-rate lines
Sources: APRA; RBA
Sources: APRA; RBA

Business Loan Commitments* Lending to Selected Industries

Small and medium-sized businesses, excluding refinancing Small and medium-sized businesses, credit outstanding
$b $b
$b $b Highly affected by COVID-19* Less affected by COVID-19*
Other** Purchase of property
Working capital Construction Rental
Plant and equipment
9 9
80 80
Agriculture
Total
6 6 Other highly affected**
Other services***
40 40

Accom & food

Construction
3 3
Admin Healthcare

0 0
2019 2020 2021 2019 2020 2021
0 0 * Highly affected industries had the highest share of businesses report
S D M J S D M J S a fall in revenue of greater than 50 per cent in a June 2020 ABS
2019 2020 2021 survey; less affected industries are the top four by value of SME lending
** Education & training; arts & recreation; information media & telecoms
* Fixed-term loans; not seasonally adjusted *** Other services includes a broad range of personal services, selected
** Wholesale finance, acquisitions and general business purposes repair and maintenance activities and households employing staff
Sources: APRA; RBA Sources: APRA; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 10
Credit and Money
Credit and Broad Money Growth Housing Credit Growth
ear ended % %
Oner-occupier Investor
% %
1 1
Broad money Six-month
annualised
9 9
15 15
6 6

3 3
10 10
0 0

redit % %
5 5 Monthly
0.5 0.5

0.0 0.0
0 0
1996 2001 2006 2011 2016 2021 -0.5 -0.5
Sources: ABS; APRA; RBA 011 016 01 011 016 01
Sources: APRA; RBA

Monetary Aggregates Growth Credit Growth by Sector

Year-ended Year-ended
% % % %
M3 Housing
20 20 20 20

15 15 10 10

Business
10 10 0 0
Personal

5 5 -10 -10
Currency

0 0 -20 -20
1996 2001 2006 2011 2016 2021 2001 2005 2009 2013 2017 2021
Sources: APRA; RBA Sources: ABS; APRA; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 11
Factors of Production and Labour Market
Factors of Production Wage Price Index Growth*
Annual growth % %
% Net capital stock* %

5 5 4 4

3 3 3 3
Year-ended

% Working-age population %
2 2

2.0 2.0 uarterly

1 1
1.5 1.5

0 0
1.0 1.0 2001 2006 2011 2016 2021
84 / 85 91 / 92 98 / 99 05 / 06 12 / 13 19 / 20 * otal pay excluding bonuses
* Excluding livestock & orchards, dwellings and ownership transfer costs Source: ABS
Sources: ABS; RBA

aital Ratios* Unit Labour Costs Growth

17/80 = 100 Non-farm, year-ended
inde inde % Unit labour costs %
10 10
200 200 5 5
aitallaour ratio
0 0
175 175
-5 -5

150 150 % %

10 10
125 125 Average earnings per hour

aitaloutut ratio 5 5
100 100
0 0
Labour productivity per hour
75 75 -5 -5
8 4 / 85 1 / 2 8 /  05 / 0 12 / 13 1 / 20 1996 2001 2006 2011 2016 2021
* aial sock ecludes liesock & orchards, dwellings and ownership Sources: ABS; RBA
transfer costs
Sources: ABS; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 12
 FA C TO R S O F P R O D U C T I O N A N D L A B O U R M A R K E T

Employment and Participation Rates Employment and Hours Worked*

% % 2008 average = 100
Participation rate index index

64 64
120 120

61 61 Employment
110 110

58 58 Total hours worked

100 100
Employment to working-age population ratio
Average hours worked
55 55
1996 2001 2006 2011 2016 2021 90 90
Source: ABS 2009 2013 2017 2021
* Seasonally adjusted
Sources: ABS; RBA

Labour Underutilisation Rates Job Vacancies and Advertisements

Heads-based Per cent of labour force
% % % %

2.5 2.5
Advertisements
12 12 (NSC)
2.0 2.0
Vacancies*
(ABS survey)
9 9 1.5 1.5
Underemployment rate*

1.0 1.0
Advertisements
6 6 (ANZ survey)
0.5 0.5
Unemployment rate

3 3 0.0 0.0
1996 2001 2006 2011 2016 2021 2009 2013 2017 2021
* Full-time workers on reduced hours for economic reasons and * This survey was suspended between May 2008 and November 2009
part-time workers who would like, and are available, to work more hours Sources: ABS; ANZ; National Skills Commission (NSC); RBA
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 13
Regions and Industry
Stte Shre of Out ut State Unemployment Rates*
Nominal Seasonally ad$usted
% % ) )
South Australia
Ne# South Wales
5 5 *ueensland
( (

0 0 0asmania
+ictoria
Victoria & &
25 25

20 20 6 6
"ueensland
15 15
5 5
Western Australia
Western Australia
10 10
South Australia
' '
5 5 Ne, South Wales
!asmania
0 0 3 3
89 / 90 9 / 95 99 / 00 0 / 05 09 / 10 14 / 15 19 / 20 201& 2021 201& 2021
Source: ABS
* 5he trend series have been suspended from April 2020 until more
certainty emerges in the underlying trend in labour mar:et activity
over the ;<>I?-19 period
Source: ABS

Industry Share of Output* Employment Growth by Industry*

% % Cumulative change since March 2013
Hther business services** ’000 ’000

Manufacturing
1@ 1@ 900 900
Retail and wholesale Business
trade services
600 600
Household
10 10 services Public
Iinancial and insurance services
administration
300 300
Fonstruction Construction
Other**
E E
Mining 0 0
Retail and Mining Manufacturing
Agriculture wholesale trade
2 2 -300 -300
B9 A 90 9@ A 95 99 A 00 0@ A 05 09 A 10 1@ A 15 19 A 20 2013 2017 2021 2017 2021
* Nominal gross value added * The trend series have been suspended from June 2020 until more
** Jncludes: information media and telecommunications; rental, hiring certainty emerges in the underlying trend in labour market activity
and real estate services; professional, scientific and technical services; over the COVID-19 period
administrative and support services ** Includes agriculture, forestry & fishing; transport, postal & warehousing;
and electricity, gas, water & waste services
Source: ABS
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 14
Government
UXZtr[\i[n Go]ern^ent _Xdget _[\[nce* State Budget Balances*
Per cent of nominal `cP Per cent of nominal GDP
% % % %

1.0 1.0
0S0 0S0
0.5 0.5

0.0 0.0
M2S5 M2S5

-0.5 -0.5
M5S0 M5S0
-1.0 -1.0

-1.5 -1.5
M7S5 M7S5
-2.0 -2.0

M10S0 M10S0 -2.5 -2.5

8L / 85 92 / 9K 00 / 01 08 / 09 16 / 17 2L / 25 84 / 85 91 / 92 98 / 99 05 / 06 12 / 13 19 / 20
* enderlying cash balance; 2021/22 Budget * Underlying cash balance
Source: Australian freasury Source: ABS

Public Construction Work Done Taxation Revenue Growth

Per cent of nominal GDP Nominal, year-ended with contributions
% % % Total Corporate income tax* Other %
Total Household income tax GST
15 15

3 3
10 10

5 5
2 2
0 0
Engineering
-5 -5
1 1

-10 -10
Building
0 0 -15 -15
1991 1997 2003 2009 2015 2021 2005 2009 2013 2017 2021
Source: ABS * Only includes taxation of resident corporations
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 15
Commodity Prices
RBA Index of Commodity Prices ril and zN{ |ri}e~
ShRn 2019/20 aoerage q 100n log scale Monthly
index index US$/b US$/
Brent oil MMBtu
1g5 1g5 (LHS)
125 25

100 100
100 20

75 15
65 65

50 10

25 5
Japan and Korea LNG spot
(RHS)
g0 g0 0 0
1991 1997 200g 2009 2015 2021 2011 2013 2015 2017 2019 2021
Source: RBA Sources: Bloomberg; RBA; Refinitiv

Bul €‚‚dƒt„ Prices Terms of Trade*

…ree on board basis 2018/19 average = 100, log scale
US$/t †ron ore Thermal coal Coking coal US$/t index index
‡ˆHS) (LHS) (RHS)
120 120

165 350
Average 100 100
Spot price*
Australian
export price
80 80
120 250

60 60
75 150

30 50 40 40
2015 2021 2015 2021 2015 2021 1961 1981 2001 2021
* Iron ore 62% Fe Fines Index; Newcastle thermal coal and premium * Annual data are used prior to 1960
hard coking coal
Sources: ABS; RBA
Sources: ABS; Bloomberg; IHS Markit; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 16
Balance of Payments and External Position
Export Volumes Resource Exports*
Log scale, quarterly ‰og scaleŠ ‹uarterly
$b $b Œt Œt

Resources Services ‰G

40 16 200 12

Rural
ron ore

20 8 100 

Manufacturing
Coal
10 4 50 Ž
2001 2011 2021 2001 2011 2021 2009 2015 2021 2009 2015 2021
Sources: ABS; RBA * Seasonally ad‘usted by the ’BA
Sources: ABS“ De”artment of •ndustry– Science– —nergy and ’esources“
’BA

Import Volumes E¡¢or£¤ ¥¦ §e¤£¨na£¨on

Log ˜cale, ™uarterlš Annual, share of total values
$œ $œ % %

Interžediate
32 32
30 30
on˜užŸtion China
16 16

20 20
Ser ice˜ Japan
› ›

aŸital US
10 10
4 4 EU-27* South Korea

India UK
2 2 0 0
2001 2011 2021 2001 2011 2021 2000 2004 2008 2012 2016 2020
Source: ABS * The series has been revised to exclude the UK
Sources: ABS; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 17
 B A L A N C E O F PAY M E N T S A N D E X T E R N A L P O S I T I O N

Current Account Balance Net Capital Inflow*

Per cent of nominal GDP
% %
Trade balance
3 3
Net income balance
0 0
Per cent of nominal GDP
% %
Debt
8 8
6 6
Total
4 4

2 2
-3 -3 0 0
Equity
-2 -2
-6 -6
-4 -4
Current account balance
-9 -9 -6 -6
1991 1996 2001 2006 2011 2016 2021 2001 2005 2009 2013 2017 2021
Source: ABS * 2021 value just includes the March and June quarters
Source: ABS

Net Foreign Liabilities External Position*

By type, per cent of nominal GDP Composition after hed©in©ª «uarterly
% % ¯b ¯b
¬ross forei©n liabilities ¬ross forei©n assets
Total
60 60
®ª000 ®ª000
°orei±n currency
45 45
Australian dollar
Long-term debt* ­ª000 ­ª000
30 30
Short-term debt*
15 15 2ª000 2ª000

0 0
Equity
1ª000 1ª000
-15 -15

-30 -30 0 0
2001 2005 2009 2013 2017 2021 200­ 2009 2015 2021 2009 2015 2021
* Short-term includes debt with residual maturity of one year or less;
* ²ed³e ratios inferred from ABS ´orei³n Currency µ¶posure surveys
long-term includes all other debt Sources: ABS; RBA
Source: ABS

C H A R T PA C K | N O V E M B E R 2 0 2 1 18
Central Bank Balance Sheets and Bond Purchases
RBA Assets ·¸¹ Lº»¼º½ºtºes
$b $b Ãb Ãb
Financial year Weekly ¾inancial year ÄeeÅly

600 600 Á00 Á00

500 500 500 500

400 400 ¿00 ¿00

300 300 Â00 Â00

200 200 200 200

100 100 100 100

0 0 0 0
14/15 16/17 18/19 20/21 J A S O 1¿À15 1ÁÀ17 18À19 20À21 Æ A S Ç
Open repo & other assets Domestic bonds CaÈital É ÊeserËe BanÌ ÊeserËe Íund GoËernment É other deÈosits
OMO repo Gold & foreign exchange BanÌnotes Ñther liabilities
Term Funding Facility ÎÏchange Settlement balances
Source: RBA Source: ÒBA

Central Bank Total Assets CeÓtraÔ ÕaÓk Öo×erÓØeÓt ÕoÓd Holdings

Per cent of GDP Ùer cent oÚ eliÛible stocÜ outstandinÛ*
% %
% %
5Ý 5Ý
125 25 Japan
Japan UK Sáeden
ßÝ ßÝ
Sweden àZ
100 20
3Ý 3Ý

75 15 Euro area** US
2Ý 2Ý
Euro area NZ Canada
50 10 1Ý 1Ý
Australia Australia
UK
25 5 Ý Ý
Canada 2Ý17 2Ý1Þ 2Ý21 2Ý17 2Ý1Þ 2Ý21
US * âata include noãinal and inälation-linåed bonds issued bæ central
0 0 çovernãents that are eliçible äor purchase in the secondaræ ãarået
under central banåsè çovernãent bond purchase proçraãs éäor
2017 2019 2021 2017 2019 2021 Australia, this is noãinal Australian êovernãent Securities onlæ); data
Sources: Central banks; RBA; Refinitiv äor euro area also include eliçible bonds issued bæ local and reçional
çovernãents
** ëoldinçs data äor euro area onlæ include bonds held as part oä asset
purchase proçraãs; holdinçs data äor other central banås also include
bonds held äor operational or liìuiditæ purposes
Sources: Central banås; debt ãanaçeãent oääices; RBA; Reäinitiv

C H A R T PA C K | N O V E M B E R 2 0 2 1 19
Interest Rates
Australian Cash Rate Target ïoliðñ òntereót Rateó
% % % %
US
7 7 5 5

6 6
4 4
5 5
3 3
î î Euro area*
2 2
í í
1 1
2 2

1 1 0 0
Japan
0 0 -1 -1
1996 2001 2006 2011 2016 2021 2009 2013 2017 2021
Source: RBA * Main refinancing rate until the introduction of 3-year LTROs in
December 2011; deposit facility rate thereafter
Source: Central banks

Australian Cash Rôtõ ônd 90-dôö Bill ÷iõld Policy Interest Rates – Selected
% %
Advanced Economies
% %
8 8
NZ
8 8
6 6
90-day bill yield
6 UK 6
Cash rate
4 4
target
4 4
2 2
2 2
Real cash rate* Sweden
0 0 Canada
0 0
-2 -2
1996 2001 2006 2011 2016 2021 Switzerland
* -2 -2
Calculated using average of year-ended weighted median inflation
2009 2013 2017 2021
and year-ended trimmed mean inflation
Sources: ABS; AFMA; ASX; RBA Source: Central banks

C H A R T PA C K | N O V E M B E R 2 0 2 1 20
 I N T E R E S T R AT E S

øonetary ùoúiûy ü ýhina þ0-year Australian Government Bond Yield

% Interest rates % % %
Reserve requirement ratios
7 7
One-year MLF* Large institutions
6 20 6 6
One-year
benchmark
5 5
lending
4 15 4 4

Medium institutions 3 3

2 10 2 2
Seven-day
repo One-year Small institutions
(month average) benchmark 1 1
deposit
0 5 0 0
2011 2016 2021 2011 2016 2021 2001 2005 2009 2013 2017 2021
* Medium term lending facility Sources: RBA; Yieldbroker
Sources: CEIC Data; RBA

Policy Interest Rates – Emerging Markets 10-year Government Bond Yields

% % % %
Brazil Russia* 6 6
12 16
US
Indonesia* 5 5
China
ÿ 12 4 4
India
3 3
Germany
6 8
Philippines 2 2

1 1
3 4
Malaysia Japan
South Mexico 0 0
Thailand South Korea Africa
0 0 -1 -1
200ÿ 2015 2021 200ÿ 2015 2021 2001 2005 2009 2013 2017 2021
* Breaks in series indicate changes in the official policy rates for Russia Sources: CEIC Data; Refinitiv
(September 2013) and Indonesia (August 2016)
Source: Central banks

C H A R T PA C K | N O V E M B E R 2 0 2 1 21
 I N T E R E S T R AT E S

Spread between Australian 10-year Bond Australian Non-financial Corporate Bond Yields
3-year target
Yield and the Cash Rate Target % %
ppt ppt
BBB
4 4
9 9

2 2

6 6
0 0
A
-2 -2
3 3

-4 -4

0 0
- - 2005 2009 2013 2017 2021
1991 199 2001 2006 2011 2016 2021
Sources: Bloomberg; RBA
Source: RBA

Differential between Australian and Australian Non-financial Corporate Bond Spreads

US 10-year Government Bond Yields Spread to government yields; 3-year target
bps bps
bps bps

400 400 800 800

300 300
600 600
BBB
200 200
400 400
100 100

200 200
0 0
A

0 0
-100 -100 2005 2009 2013 2017 2021
1991 1996 2001 2006 2011 2016 2021
Sources: Bloomberg; RBA
Sources: RBA; Refinitiv; Yieldbroker

C H A R T PA C K | N O V E M B E R 2 0 2 1 22
 I N T E R E S T R AT E S

US Corporate Bond Yields Chinese Corporate Bond Yields

% % 5-year maturity
% %
10 10
BBB corporates*
8 8 8 8
Low-rated*

6 6
AA corporates* 6 6

4 4

2 2 4 4
High-rated**
Five-year swap
0 0
2005 2009 2013 2017 2021 2 2
* Includes financials and non-financials 2011 2013 2015 2017 2019 2021
Source: ICE Data is used with permission * Based on AA- domestically rated bond
** Based on AAA domestically rated bond
Source: CEIC Data

US Corporate Bond Spreads Emerging Market Government Bond Yields*

To US government bonds US dollar-denominated
bps bps % %

600 600 20 20
BBB corporates* Europe

400 400 15 15
AA corporates* Latin America

200 200 10 10

Asia
0 0 5 5
Five-year swap

-200 -200 0 0
2005 2009 2013 2017 2021 1996 2001 2006 2011 2016 2021
* Includes financials and non-financials * Weighted average across issuers
Sources: Bloomberg; ICE Data is used with permission Source: J.P. Morgan

C H A R T PA C K | N O V E M B E R 2 0 2 1 23
 I N T E R E S T R AT E S

Variable Housing Interest Rates Fixed Housing Interest Rates

% % 3-year maturity
% %
Major banks’
reference rates 12 12
5 5
Outstanding loans*
10 10
New loans*
4 4 8 8
Advertised*
6 6

3 3 Swap rate
4 4

2 2
2 2
2015 2016 2017 2018 2019 2020 2021 0 0
* Series break in July 2019; thereafter, data based on EFS collection 1996 2001 2006 2011 2016 2021
Sources: APRA; banks' websites; CANSTAR; RBA; Securitisation System * Available to owner-occupiers
Sources: Banks’ websites; CANSTAR; RBA; Refinitiv

Housing Interest Rates* Australian Business Lending Rates*

Outstanding loans Average interest rate on credit outstanding
% Owner-occupier Investor % % %
Small loans
5.0 5.0
8 8

4.5 4.5 Small business

Interest-only (EFS)
6 6
Large loans
4.0 4.0

4 4
3.5 3.5
Medium business
Principal-and-interest (EFS)
3.0 3.0 2 2
Large business
(EFS)
2.5 2.5 0 0
2017 2021 2017 2021 2001 2006 2011 2016 2021
* Average of variable-rate securitised loans to 2019; thereafter, average * Small loans are loans less than $2 million; large loans are loans $2
of fixed and variable-rate loans, based on EFS data million or more; new series from July 2019 are from the Economic
Sources: APRA; RBA; Securitisation System and Financial Statistics (EFS) collection (see Statistical Table F7)
Sources: APRA; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 24
Share Markets

hare Price Accumulation Indices Advanced Economies’ Share Price Indices
Log scale, end December 1994 = 100 Log scale end December 1994 = 100
index index index index
1000 1000
800 800
1,100 1,100
900 900 00 00
700 700 400 400
ASX 200 Euro area US
500 500
S&P 500
200 200
300 300
U
100 100
MSCI world
Japan
100 100
80 80 40 40
1996 2001 2006 2011 2016 2021 199 2001 200 2011 201 2021
Sources: Bloomberg; RBA Sources: Bloomberg; RB

Emerging Markets’ Share Price Indices*

Log sca
e end Deceer 199 = 100
inde inde
1500 1500
Eerging Euro e
1000 1000
Latin Aerica
500 500

China
200 200

Wor
d
100 100

Eerging Asia
0 0
199 2001 200 2011 201 2021
* MSC ndces; Sana Coose nde for Cna
Sources: Booer; MSC; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 25
Bond Issuance
Bonds on Isse in Atralia Total No7:go;e<7me7t Bo7>s o7 Issue
$b $b All currency denominations
5b 5b
00 00
700 700
/00 /00
600 600 ?inancials
500 500 250 250
Non-governmen**
400 400

000 @on-financial 000

00 00
corCorations
200 Ausralan Sae 200

100 governmen* governmens 100

150 150
Asset-backed
0 0 @on-residentsH securities
11 16 2001 2006 2011 2016 2021 0 0
* Ecludes bo ds !urc"ased by #"e Aus#ral%a Go&er me # 1991 199/ 2001 200/ 2011 201/ 2021
** Ecludes A'IsÕ sel()secur%#%sa#%o s* % cludes go&er me #)guara #eed * Australian dollar-denominated bonds only
bo ds Sources: ABSJ BloombergJ QangaReUsJ PriVate Placement XonitorJ YBA
Sources: ABS; AOFM; Bloomberg; +a gaNews; Pr%&a#e Placeme #
Mo %#or; RBA; S#a#e .reasury Cor!ora#%o s

Non-goveZnment Bond [ss\]n^e on‘overnment Bon’s on Issue in “ustra”ia

_ross issuance Ž Ž
{b {b
`ojestic issuers* Australia
qon-resident issuers**
4z 4z ‹ŒŒ ‹ŒŒ
•inancials
2z 2z 15Œ 15Œ

Asset-Žacked securities*
{b |}}shore {b
1ŒŒ 1ŒŒ
z z

4z 4z 5Œ 5Œ
Non-financial
2z 2z Non-residents corporations
Œ Œ
z z 1991 1996 ‹ŒŒ1 ‹ŒŒ6 ‹Œ11 ‹Œ16 ‹Œ‹1
2zz1 2zz5 2zz~ 2z13 2z17 2z21 * –—cludes ADIs˜ self-securitisations
* Excludes A€Is sel‚ -securitisations Sources: ABS; Bloo™šerg; KangaNews; Private Place™ent ›onitor; œBA
** ƒ‚‚shore non-resident issuance includes Australian dollar-deno„inated
bonds onl…
Sources: Bloo„ber†; Kan†a‡eˆs; ‰rivate ‰lace„ent Šonitor; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 26
 B O N D I S S UA N C E

US and Euro Area Corporate Bond Issuance* Emerging Market Corporate Bond Issuance*
ross issužŸce ²ross issuance
 S§b  S  S§b µS¶b µS¶b
¡i¢£¢ci£ls China
500
¤o¢¥¦i¢£¢ci£ls
500 ³oreign currency´denominated
300 300
400 400 Local currency´denominated

300 300 200 200

200 200
100 100
100 100

 S§b ¨uro žrež  S§b µS¶b ·ther µS¶b

ª00 ª00 22¸ 22¸
600 600
1¸0 1¸0
400 400
200 200 7¸ 7¸

0 0 0 0
2005 200© 2013 2017 2021 200¸ 2009 2013 2017 2021
* «ece¬ber 2021 is ­u®r¯er°¯o°d®¯e * ¹ecember 2021 is ºuarter»to»date
Sources: «e®lo±ic; RBA Sources: ¹ealogic; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 27
Exchange Rates
AÁÂtralian Ãollar Trade-weighted Index* Official Reserve Assets*
A$b A$b
¾¿deÀ ¾¿deÀ Official reserve assets
80 80
½0 ½0
60 60
Real

70 70 40 40

20 20
60 60 Net foreign reserves**

A$b A$b
Nom¾¿al 4 4
50 50 2 2
RBA foreign exchange market intervention transactions***
0 0
-2 -2
40 40 -4 -4
1¼½6 1¼¼3 2000 2007 2014 2021 1996 2001 2006 2011 2016 2021
* MaÄ 1Å70 = 100 Æor ÇomÈÇal; real ÈÇdeÉed Êo eËuaÊe ÌosÊÍÆloaÊ * The reporting methodology for official reserve asset data changes
aÎerages; laÊesÊ obserÎaÊÈoÇs Æor real ÏÐI are esÊÈmaÊes in 2015
Sources: ABS; RBA; ReÆÈÇÈÊÈÎ; ÐMÑReuÊers ** Excludes net forward foreign currency commitments
*** Data up to 30 June 2019; a positive value indicates a purchase of
foreign exchange, while a negative value indicates a sale of foreign
exchange
Source: RBA

AÖ×tralØan Dollar ïS ðoññar

yen ÔS$, yen íSî
euro
25è èìëè
íSî per euro*
200 1Ò60 òõHS, inverted scaleó
Ùen Úer A$ 21è 1ìèè
ÛLÜSÝ
150 1Ò20 1êè 1ì2è
ÔS$ Úer A$
ÛÞÜSÝ
13è 1ìéè
100 0ÒÓ0 ôen per íSî
òLHSó
9è 1ì6è
Euro Úer A$ß
ÛÞÜSÝ
50 0Ò40 5è 1ìëè
1986 1993 2000 2007 2014 2021 19ë6 1993 2èèè 2èèê 2è1é 2è21
* Eàá âer A$ until 31 ãeceäåer 1ææç * öS÷ per øCö until 31 Deceùúer 199û
Source: Blooäåerg Sources: Blooùúerg; øurostat

C H A R T PA C K | N O V E M B E R 2 0 2 1 28
 E XC H A N G E R AT E S

Selecÿed Asian Currencies againsÿ ÿhe US Dollar G3 Nominal Trade-weighted Indices

ü1 January 2000 = 100 1999–2020 average = 100
indeþ indeþ index index
Singapore Japanese yen
1ý0 1ý0
120 120
South Korea US dollar
120 120
Thailand 110 110
Malaysia
100 100
100 100
80 80
India
90 90
60 60
Indonesia
Euro
ý0 ý0 80 80
2001 2005 2009 201ü 2017 2021 2001 2005 2009 2013 2017 2021
Source: Bloomber Sources: BIS; Bloomberg; Board of Governors of the Federal Reserve
System

Chinese Renminbi
index yuan

ominal effectie exchange rate*
(LHS, 2010 average = 100)
120 6.0

110 6.5

100 7.0

90 7.5

80 8.0
Yuan per US$
(RHS, monthly average, inverted scale)
70 8.5

60 9.0
2001 2005 2009 2013 2017 2021
* Monthly aerage nominal rate calculated using BIS EER eights
Sources: BIS; Refinit

C H A R T PA C K | N O V E M B E R 2 0 2 1 29
Banking Indicators
Australian Bank Profitability* Australian Bank Profits
Return on shareholders’ equity after tax and minority interests Net profit after tax Bad and doubtful debts charge
% % $b Major banks Major banks $b

Majors 12 12
20 20

6 6

10 10

$b Other Australian-owned Other Australian-owned $b

Other Australian-owned banks banks banks
0 0
2.2 2.2

-10 -10 1.1 1.1

1990 1996 2002 200 2014 2020
* Fiscal years from 2003 onwards; prior data are as reported in banks’
financial statements
Sources: APRA; Banks’ annual reports; RBA
$b Foreign-owned banks Foreign-owned banks $b

1.5 1.5

Majo BanksÕ
et nte est Ma gin*
Domestic half-yearly 0.0 0.0
% %

-1.5 -1.5
2008 2014 2020 2008 2014 2020
0 0
Sources: APRA; RBA

2 2

20 20

1 1
2001 2005 2009 2013 2017 2021
* ata for a given eriod relate to bans ublic rofit reorts released
in that half; FRS basis from 2006 AAAP rior; excludes St eorge
Ban and Banwest rior to the first half of 2009
Sources: Bans financial reorts; RBA

C H A R T PA C K | N O V E M B E R 2 0 2 1 30
 B A N K I N G I N D I C ATO R S

Banks’ Non-performing Assets Banks’ Non-performing Assets

Domestic boos Consolidated lobal oerations, share of on-balance sheet assets
% % % %
Share o all assets! Share o assets by ty#e!!

Total
" " 6 6

Business'
(57%)
2 2 4 4
%ersonal
Total (&%)

1 1 2 2
aired
Housin(
(41%)
0 0 0 0
2007 2014 2021 2007 2014 2021 99 996 200 2006 20 206 202
* Includes lendin/ to 0inancial businesses2 bills2 short4term and lon/4term
debt securities and other non4household loans
* ncludes assets 90+ days ast due tat are well secured
** 6ach cate/ory7s share o0 total domestic lendin/ at June 2020 is sho9n Source: R
in :arentheses; shares may not add u: to 100 due to roundin/
Sources: A<>A; >BA

XZndin[ \o]^osition o_ `anbs in AZstralia* Ca?ital Ratios*

Share of total funding Consolidated global operations of locally incorporated AD@s
% % % %
BanBs Credit unions and
building societies
60 60
F0 F0
Domestic deposits
50 50

15 15
40 40
Total
30 30
Short-term debt** 10 10
Tier 1
20 20
Long-term debt
CET1
5 5
10 10
Securitisation TFF*** Tier F
Equity
0 0 0 0
2005 2009 2013 2017 2021 1JJ3 F006 F01J 1JJ3 F006 F01J
* Adjusted for movements in foreign exchange rates; tenor of debt is * Per cent of risL-weighted assets; breaL in Oarch Q00S due to the
estimated on a residual maturity basis
introduction of Basel VV for most ADVs; breaL in Oarch Q013 due to the
** Includes deposits and intragroup funding from non-residents
introduction of Basel VVV for all ADVs
*** Term Funding Facility
Source: APWA
Sources: ABS; APRA; Bloomberg; RBA; Refinitiv; Standard & Poor’s

C H A R T PA C K | N O V E M B E R 2 0 2 1 31