The Australian Economy and Financial Markets Chart Pack | September 2020

The Australian Economy and Financial Markets

Contents

1 World Economy

4 Australian Growth

5 Australian Inflation

6 Household Sector

8 Business Sector

10 Credit and Money

11 Factors of Production and Labour Market

13 Regions and Industry

14 Government

15 Commodity Prices

16 Balance of Payments and External Position

18 Interest Rates

23 Share Markets

24 Bond Issuance

26 Exchange Rates

28 Banking Indicators

© Reserve Bank of Australia 2020

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World Economy

2016201220082004 2020-4

-2

0

2

4

6

%

-4

-2

0

2

4

6

%

GDP Growth – WorldYear-ended

Major trading partners*

World**

* Weighted using Australian export shares** PPP-weighted; accounts for 85 per cent of world GDP

Sources: ABS; CEIC Data; IMF; RBA; Refinitiv

201620122008 2020-8

0

8

%

-8

0

8

%

GDP Growth – China and IndiaYear-ended

India

China

Sources: CEIC Data; RBA

2016201220082004 2020-20

-15

-10

-5

0

5

%

-20

-15

-10

-5

0

5

%

GDP Growth – Advanced EconomiesYear-ended

JapanEuro areaUS

Source: Refinitiv

2016201220082004 2020-18

-12

-6

0

6

%

-18

-12

-6

0

6

%

GDP Growth – East AsiaYear-ended

Indonesia

Malaysia

South Korea

Sources: CEIC Data; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1

201620122008 2020-4

-2

0

2

4

%

-4

-2

0

2

4

%

Inflation – Advanced Economies*Year-ended

Japan

Euro area

US

* Personal consumption expenditure (PCE) inflation for the US; Japandata excludes the effects of the consumption tax increase in April 2014

Sources: RBA; Refinitiv

2016201220082004 2020-5

0

5

10

15

%

-5

0

5

10

15

%

Inflation – China and IndiaYear-ended

China

India

Sources: Bloomberg; CEIC Data

Labour Markets – Advanced EconomiesUnemployment rate

4

8

12

%

4

8

12

%

Euro area

US

Wages growth*Year-ended

2017201420112008 2020-3

0

3

6

%

-3

0

3

6

%

Japan

* Average hourly earnings for the US; compensation per employee forthe euro area; smoothed full-time base wages for Japan

Sources: ECB; Eurostat; RBA; Refinitiv

2016201220082004 2020-5

0

5

10

15

%

-5

0

5

10

15

%

Inflation – East AsiaYear-ended

Malaysia South Korea

Indonesia

Sources: CEIC Data; RBA

W O R L D E CO N O M Y

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2

China – Activity IndicatorsYear-ended growth

Manufacturing PMI*

40

50

60

index Industrial production

-15

0

15

%

Fixed asset investment

20152010 2020-30

-15

0

15

30

% Real retail sales

20152010 2020-20

-10

0

10

20

%

* Diffusion index; average of the official and Caixin

Sources: CEIC Data; Markit Economics; RBA

China – Residential Property Indicators

Year-ended growth

New property prices

0

15

%

Official

Alternative*

Investment**

0

20

%

Other investment***

Land purchases

Floor space sold

2016 2020-50

0

50

% Inventory

2016 2020-25

0

25

%

* China Index Academy** Contributions of residential and non-residential investment*** Construction, installation, equipment purchases and other

Sources: CEIC Data; CIA; CRIC; RBA

Business financing*

Household loans

2017201420112008 20200

10

20

30

40

ppt

0

10

20

30

40

ppt

China – Total Social FinancingContribution to six-month annualised growth

Debt swap adjustment**

* Sum of business loans, securities financing and off-balance sheetfinancing

** Upper bound estimate after including local government bond issuanceto pay off debt previously included in TSF

Sources: CEIC Data; RBA

China – Gross Output of Selected Products*

2006 average = 100

20152010 202050

100

150

200

250

index

Electricity generation

Plate glass

Cement

20152010 202050

100

150

200

250

index

Steel products

Crude steel

* Seasonally adjusted by RBA

Sources: CEIC Data; RBA

W O R L D E CO N O M Y

C H A R T PAC K | S E P T E M B E R 2 0 2 0 3

Australian Growth

20152010200520001995 2020-2

0

2

4

%

-2

0

2

4

%GDP Growth

Year-ended

Quarterly

Source: ABS

March 2020

GD

P

Con

sum

ptio

n

Dw

ellin

gin

vest

men

t

Min

ing

inve

stm

ent

Non

-min

ing

inve

stm

ent

Gov

ernm

ent

Exp

orts

Impo

rts

-1.0

-0.5

0.0

0.5

1.0

1.5

ppt

-1.0

-0.5

0.0

0.5

1.0

1.5

ppt

Contributions to GDP GrowthYear-ended

Sources: ABS; RBA

Mining and Non-mining ActivityYear-ended growth, RBA estimates

Mining*Mining*

0

10

20

%

0

10

20

%

Mining investment Resource exports

Non-mining

2016201220082004 20200

3

6

%

0

3

6

%

* Net of mining-related imports; components are contributions toyear-ended mining activity growth; contribution from changes ininventories not shown

Sources: ABS; RBA

20162012200820042000 2020-15

-10

-5

0

5

10

15

%

-15

-10

-5

0

5

10

15

%

State Final DemandYear-ended growth

Rest of Australia

WA

NSW and Vic

Sources: ABS; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 4

Australian Inflation

20152010200520001995 2020-2

-1

0

1

2

3

4

%

-2

-1

0

1

2

3

4

%Consumer Price Inflation*

Year-ended

Quarterly(seasonally adjusted)

* Excludes interest charges prior to the September quarter 1998;adjusted for the tax changes of 1999–2000

Sources: ABS; RBA

20152010200520001995 20200

1

2

3

4

5

%

0

1

2

3

4

5

%

Measures of Underlying Inflation*Year-ended

Weighted median

Trimmed mean

CPI excl volatile items

* Excludes interest charges prior to September 1998 and deposit & loanfacilities prior to September 2011; adjusted for 1999–2000 tax changes

Sources: ABS; RBA

Tradable and Non-tradable Inflation*Non-tradables**Non-tradables**

-2

0

2

4

%

-2

0

2

4

%

Year-ended

Quarterly(seasonally adjusted)

Tradables excl volatilesTradables excl volatiles

20152010200520001995 2020-2

0

2

4

%

-2

0

2

4

%

* Adjusted for the tax changes of 1999–2000** Excludes interest charges and indirect deposit & loan facilities

Sources: ABS; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 5

Household Sector

Household Income and Consumption*Real, year-ended growth

0

5

10

%

0

5

10

%

Disposable income

Consumption

Saving ratio

201520102005200019951990 2020-5

0

5

10

%

-5

0

5

10

%

* Household sector includes unincorporated enterprises; disposableincome is after tax and interest payments; saving ratio is net ofdepreciation

Sources: ABS; RBA

2017201420112008 202070

85

100

index

70

85

100

index

Consumer Sentiment*Average since 1980 = 100

* Average of the ANZ-Roy Morgan and Westpac-Melbourne Instituteconsumer sentiment measure of respondents’ perceptions of theirpersonal finances relative to the previous year; ANZ-Roy Morganindex rescaled to have the same average as the Westpac-MelbourneInstitute index since 1996

Sources: ANZ-Roy Morgan; RBA; Westpac and Melbourne Institute

201520102005200019951990 20206

12

18

24

$b

6

12

18

24

$b

Private Dwelling Investment*Chain volume, quarterly

* Reference year is 2017/18

Source: ABS

20152010200520001995 20200

4

8

12

16

20

’000

0

4

8

12

16

20

’000

Private Residential Building ApprovalsMonthly

Higher-density housing

Total

Detachedhouses

Source: ABS

C H A R T PAC K | S E P T E M B E R 2 0 2 0 6

Housing Prices and Household Debt*Ratio to household disposable income

Housing prices

20051990 20202

3

4

5

ratioHousehold debt

20051990 20200.5

1.0

1.5

2.0

ratio

* Household disposable income is after tax, before the deduction ofinterest payments, and includes income of unincorporated enterprises

Sources: ABS; CoreLogic; RBA

2015201020052000 20200

200

400

600

%

0

200

400

600

%

Household Wealth and Liabilities*Per cent of annual household disposable income

Dwellings

Liabilities

Financial assets

Net wealth

* Household disposable income is after tax, before the deduction ofinterest payments, and includes income of unincorporated enterprises

Sources: ABS; RBA

2017201420112008 2020-10

-5

0

5

10

15

%

-10

-5

0

5

10

15

%

Housing PricesYear-ended growth, seasonally adjusted

CoreLogic**

ABS*

Residex*

APM***

* ABS is a quarterly stratified median price index; Residex is a quarterlyrepeat sales price index

** Monthly hedonic price index; non-seasonally adjusted*** Quarterly stratified median price index

Sources: ABS; APM; CoreLogic; RBA; Residex

2016201220082004 20200

5

10

15

20

$b

0

5

10

15

20

$b

Housing Loan Commitments*Excluding refinancing

Total

Investor

Owner-occupier

* Seasonally adjusted

Sources: ABS; RBA

H O U S E H O L D S E C TO R

C H A R T PAC K | S E P T E M B E R 2 0 2 0 7

Business Sector

201520102005200019951990 202010

12

14

16

18

%

10

12

14

16

18

%

Business Investment*Share of nominal GDP

* Adjusted for second-hand asset transfers between the private andother sectors

Source: ABS

Capital Expenditure – Mining and Non-mining*Nominal, log scale

Mining

06 / 0792 / 93 20 / 212

4

8

16

32

64

128

$bNon-mining

06 / 0792 / 93 20 / 212

4

8

16

32

64

128

$b

* Dots are firms’ expectations for 2020/21; adjusted for historicaldifferences between expected and realised spending

Sources: ABS; RBA

201520102005200019951990 20200

2

4

6

8

%

0

2

4

6

8

%

Business Investment Components*Share of nominal GDP

Engineering

Buildings

Machinery and equipment

* Adjusted for second-hand asset transfers between the private andother sectors

Source: ABS

13 / 1408 / 0903 / 0498 / 9993 / 94 18 / 190

10

20

30

40

50

%

0

10

20

30

40

50

%Industry Share of Business Investment*

Mining

Construction

Retail andwholesale trade

Financial andinsurance services

Manufacturing

Other businessservices**

Agriculture

* Nominal; includes second hand asset transfers** Includes: information media and telecommunications; rental, hiring

and real estate services; professional, scientific and technical services;administrative and support services

Source: ABS

C H A R T PAC K | S E P T E M B E R 2 0 2 0 8

NAB Business SurveyBusiness conditions*

-30

-15

0

15

ppt

-30

-15

0

15

ppt

Business confidence*

-60

-30

0

ppt

-60

-30

0

ppt

Capacity utilisation

201520102005200019951990 202068

72

76

80

84

%

68

72

76

80

84

%

Average since 1989

* Net balance; deviation from average since 1989

Sources: NAB; RBA

20162012200820042000 20200

4

8

12

%

0

4

8

12

%

Private Non-financial Corporation Profits*Share of nominal GDP

Mining

Non-mining

* Gross operating profits; inventory valuation adjusted

Sources: ABS; RBA

Lending to Business*Break-adjusted

Exposures data

20162012 20200

200

400

600

$b

Small business

Medium business

Large business

EFS data

M JS SD2019 2020

0

200

400

600

$b

* Exposures data capture credit exposures on the balance sheets ofbanks allowed by APRA to use an internal ratings-based approachfor credit risk management; EFS data are based on reporting of banksand finance companies that have $2 billion or more of business credit

Sources: APRA; RBA

B U S I N E S S S E C TO R

C H A R T PAC K | S E P T E M B E R 2 0 2 0 9

Credit and Money

2015201020052000 20200

5

10

15

%

0

5

10

15

%

Credit and Broad Money GrowthYear-ended

Broad money

Credit

Sources: ABS; APRA; RBA

Housing Credit GrowthOwner-occupier

0

3

6

9

12

%

Six-monthannualised

Investor

0

3

6

9

12

%

20152010 2020-0.5

0.0

0.5

%Monthly

20152010 2020-0.5

0.0

0.5

%

Sources: APRA; RBA

2015201020052000 20200

5

10

15

20

%

0

5

10

15

20

%

Monetary Aggregates GrowthYear-ended

M3

Currency

Sources: APRA; RBA

20162012200820042000 2020-20

-10

0

10

20

%

-20

-10

0

10

20

%

Credit Growth by SectorYear-ended

Housing

Business

Personal

Sources: ABS; APRA; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 0

Factors of Production and Labour Market

Factors of ProductionAnnual growth

Net capital stock*

3

5

%

3

5

%

Working-age population

11 / 1204 / 0597 / 9890 / 9183 / 84 18 / 191.0

1.5

2.0

%

1.0

1.5

2.0

%

* Excluding livestock & orchards, dwellings and ownership transfer costs

Sources: ABS; RBA

20162012200820042000 20200

1

2

3

4

%

0

1

2

3

4

%Wage Price Index Growth*

Year-ended

Quarterly

* Total pay excluding bonuses

Source: ABS

11 / 1204 / 0597 / 9890 / 9183 / 84 18 / 1975

100

125

150

175

200

index

75

100

125

150

175

200

index

Capital Ratios*1979/80 = 100

Capital-output ratio

Capital-labour ratio

* Capital stock excludes livestock & orchards, dwellings and ownershiptransfer costs

Sources: ABS; RBA

Unit Labour Costs Growth

Non-farm, year-ended

Unit labour costs

0

5

%

0

5

%

20152010200520001995 2020-5

0

5

%

-5

0

5

%

Labour productivity per hour

Average earnings per hour

Sources: ABS; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 1

20152010200520001995 202055

58

61

64

%

55

58

61

64

%Employment and Participation Rates

Participation rate

Employment to working-age population ratio

Source: ABS

2017201420112008 202090

100

110

120

index

90

100

110

120

index

Employment and Hours Worked*2008 average = 100

Total hours worked

Average hours worked

Employment

* Seasonally adjusted

Sources: ABS; RBA

20152010200520001995 20203

6

9

12

%

3

6

9

12

%

Labour Underutilisation RatesHeads-based

Underemployment rate*

Unemployment rate

* Full-time workers on reduced hours for economic reasons andpart-time workers who would like, and are available, to work more hours

Source: ABS

2016201220082004 20200.0

0.5

1.0

1.5

2.0

%

0.0

0.5

1.0

1.5

2.0

%

Job Vacancies and AdvertisementsPer cent of labour force

Vacancies*(ABS survey)

Advertisements(ANZ survey)

* This survey was suspended between May 2008 and November 2009

Sources: ABS; ANZ

FAC 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

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 2

Regions and Industry

13 / 1408 / 0903 / 0498 / 9993 / 94 18 / 190

5

10

15

20

25

30

35

%

0

5

10

15

20

25

30

35

%

State Share of OutputNominal

South Australia

Tasmania

Western Australia

Queensland

Victoria

New South Wales

Source: ABS

State Unemployment Rates*Seasonally adjusted

20142008 20202

4

6

8

%

Queensland

Victoria

New South Wales

20142008 20202

4

6

8

%

Tasmania

Western Australia

South Australia

* The trend series have been suspended from April 2020, until morecertainty emerges in the underlying trend in labour market activityover the COVID-19 period

Source: ABS

13 / 1408 / 0903 / 0498 / 9993 / 94 18 / 192

6

10

14

%

2

6

10

14

%Industry Share of Output*

Mining

Manufacturing

Construction

Agriculture

Other business services**

Retail and wholesaletrade

Financial and insurance services

* Nominal gross value added** Includes: information media and telecommunications; rental, hiring

and real estate services; professional, scientific and technical services;administrative and support services

Source: ABS

Employment Growth by Industry

Cumulative change since March 2013

2016 2020-300

0

300

600

900

’000

Construction

Mining

Householdservices

Retail andwholesale trade

2016 2020-300

0

300

600

900

’000

Manufacturing

BusinessservicesPublic

administration

Other*

* Includes agriculture, forestry & fishing; transport, postal & warehousing;and electricity, gas, water & waste services

Source: ABS

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 3

Government

13 / 1406 / 0799 / 0092 / 9385 / 86 20 / 21-10.0

-7.5

-5.0

-2.5

0.0

%

-10.0

-7.5

-5.0

-2.5

0.0

%

Australian Government Budget Balance*Per cent of nominal GDP

* Underlying cash balance; 2020 July economic and fiscal update

Source: Australian Treasury

11 / 1204 / 0597 / 9890 / 9183 / 84 18 / 19-1.5

-1.0

-0.5

0.0

0.5

1.0

%

-1.5

-1.0

-0.5

0.0

0.5

1.0

%

State Budget Balances*Per cent of nominal GDP

* Underlying cash balance

Source: ABS

201520102005200019951990 20200

1

2

3

%

0

1

2

3

%

Public Construction Work DonePer cent of nominal GDP

Total

Engineering

Building

Source: ABS

TotalHousehold income taxCorporate income tax*

GSTOther

2016201220082004 2020-5

0

5

10

%

-5

0

5

10

%

Taxation Revenue GrowthNominal, year-ended with contributions

* Only includes taxation of resident corporations

Source: ABS

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 4

Commodity Prices

20142008200219961990 202030

65

100

135

index

30

65

100

135

index

RBA Index of Commodity PricesSDR, 2018/19 average = 100, log scale

Source: RBA

Base Metals, Rural and Oil PricesMonthly

20152010 202025

50

75

100

125

150

index

Rural*

Base metals*

20152010 20200

25

50

75

100

125

US$/b

Brent oil

* RBA Index of Commodity Prices sub-indices; SDR terms; 2007average = 100

Sources: Bloomberg; RBA

BulkCommodity PricesFree on board basis

Iron ore(LHS)

2015 202030

75

120

165

US$/t Thermal coal(LHS)

2015 2020

Average Australianexport price

Coking coal(RHS)

2015 202050

150

250

350

US$/t

Spot price*

* Iron ore 62% Fe Fines Index; Newcastle thermal coal and premiumhard coking coal

Sources: ABS; Bloomberg; IHS Markit; RBA

200019801960 202040

60

80

100

120

index

40

60

80

100

120

index

Terms of Trade*2017/18 average = 100, log scale

* Annual data are used prior to 1960

Sources: ABS; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 5

Balance of Payments and External Position

Export VolumesLog scale, quarterly

20102000 202010

20

40

$b

Resources

20102000 20204

8

16

$b

Services

Rural

Manufacturing

Sources: ABS; RBA

Bulk Commodity ExportsQuarterly

Iron ore

20142008 202025

75

125

175

MtCoal

20142008 202040

60

80

100

Mt

Sources: ABS; RBA

Import VolumesLog scale, quarterly

20102000 20202

4

8

16

32

$b

Consumption

Services

20102000 20202

4

8

16

32

$b

Capital

Intermediate

Source: ABS

2015201120072003 20190

5

10

15

20

25

30

%

0

5

10

15

20

25

30

%

Exports by DestinationAnnual, share of total values

Japan

China

USIndia

South Korea

EU-27

Source: ABS

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 6

201520102005200019951990 2020-9

-6

-3

0

3

%

-9

-6

-3

0

3

%

Current Account BalancePer cent of nominal GDP

Current account balance

Trade balance

Net income balance

Source: ABS

20162012200820042000 2020-10

-8

-6

-4

-2

0

2

4

6

8

%

-10

-8

-6

-4

-2

0

2

4

6

8

%

Net Capital Inflow*Per cent of nominal GDP

Equity

Debt

Total

* 2020 value just includes the March quarter

Source: ABS

20162012200820042000 2020-30

-15

0

15

30

45

60

%

-30

-15

0

15

30

45

60

%

Net Foreign LiabilitiesBy type, per cent of nominal GDP

Total

Equity

Short-term debt*

Long-term debt*

* Short-term includes debt with residual maturity of one year or less;long-term includes all other debt

Source: ABS

External Position*

Composition after hedging, quarterly

Gross foreign liabilities

201420080

1,000

2,000

3,000

4,000

$bGross foreign assets

Foreign currency

Australian dollar

20142008 20200

1,000

2,000

3,000

4,000

$b

* Hedge ratios inferred from ABS Foreign Currency Exposure surveys

Sources: ABS; RBA

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

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 7

Interest Rates

20152010200520001995 20200

1

2

3

4

5

6

7

%

0

1

2

3

4

5

6

7

%Australian Cash Rate Target

Source: RBA

201620122008 2020-1

0

1

2

3

4

5

%

-1

0

1

2

3

4

5

%Policy Interest Rates

US

Japan

Euro area*

* Main refinancing rate until the introduction of 3-year LTROs inDecember 2011; deposit facility rate thereafter

Source: Central banks

20152010200520001995 2020-2

0

2

4

6

8

%

-2

0

2

4

6

8

%Australian Cash Rate and 90-day Bill Yield

90-day bill yield

Real cash rate*

Cash ratetarget

* Calculated using average of year-ended weighted median inflationand year-ended trimmed mean inflation

Sources: ABS; ASX; RBA

201620122008 2020-2

0

2

4

6

8

%

-2

0

2

4

6

8

%

Policy Interest Rates – SelectedAdvanced Economies

UK

CanadaSweden

NZ

Switzerland

Source: Central banks

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 8

Monetary Policy – ChinaInterest rates

20162012 20200

2

4

6

%

(month average)

One-yearbenchmarklending

One-yearbenchmarkdeposit

One-year MLF*

Seven-dayrepo

Reserve requirement ratios

20162012 20205

10

15

20

%

Large institutions

Small institutions

Medium institutions

* Medium term lending facility

Sources: CEIC Data; RBA

20162012200820042000 20200

1

2

3

4

5

6

7

%

0

1

2

3

4

5

6

7

%10-year Australian Government Bond Yield

Sources: RBA; Yieldbroker

Policy Interest Rates – Emerging Markets

20152010 20200

3

6

9

12

%

India

Malaysia

Thailand South Korea

Indonesia*

20152010 20200

4

8

12

16

%

Mexico

Russia*Brazil

SouthAfrica

* Breaks in series indicate changes in the official policy rates for Russia(September 2013) and Indonesia (August 2016)

Source: Central banks

20162012200820042000 2020-1

0

1

2

3

4

5

6

%

-1

0

1

2

3

4

5

6

%10-year Government Bond Yields

Japan

Germany

US

China

Sources: Bloomberg; Refinitiv

I N T E R E S T R AT E S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 1 9

201520102005200019951990 2020-6

-4

-2

0

2

4

ppt

-6

-4

-2

0

2

4

ppt

Spread between Australian 10-year BondYield and the Cash Rate Target

Source: RBA

201620122008 20200

3

6

9

%

0

3

6

9

%

Australian Non-financial Corporate Bond Yields3-year target

A

BBB

Sources: Bloomberg; RBA

201520102005200019951990 2020-100

0

100

200

300

400

bps

-100

0

100

200

300

400

bps

Differential between Australian andUS 10-year Government Bond Yields

Sources: Bloomberg; RBA; Yieldbroker

201620122008 20200

200

400

600

800

bps

0

200

400

600

800

bps

Australian Non-financial Corporate Bond SpreadsSpread to government yields; 3-year target

A

BBB

Sources: Bloomberg; RBA

I N T E R E S T R AT E S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 0

201620122008 20200

2

4

6

8

10

%

0

2

4

6

8

10

%US Corporate Bond Yields

AA corporates*

BBB corporates*

Five-year swap

* Includes financials and non-financials

Sources: Bloomberg; ICE Data is used with permission

20182016201420122010 20202

4

6

8

%

2

4

6

8

%

Chinese Corporate Bond Yields5-year maturity

Low-rated*

High-rated**

* Based on AA- domestically rated bond** Based on AAA domestically rated bond

Source: CEIC Data

201620122008 2020-200

0

200

400

600

bps

-200

0

200

400

600

bps

US Corporate Bond SpreadsTo US government bonds

BBB corporates*

AA corporates*

Five-year swap

* Includes financials and non-financials

Sources: Bloomberg; ICE Data is used with permission

20152010200520001995 20200

5

10

15

20

%

0

5

10

15

20

%

Emerging Market Bond YieldsUS dollar-denominated, blended yield

Asia

Latin America

Europe

Sources: Bloomberg; RBA; Refinitiv

I N T E R E S T R AT E S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 1

2015 2019201820172016 20202

3

4

5

%

2

3

4

5

%Variable Housing Interest Rates

Outstanding loans*

New loans*

Major banks’reference rates

* Series break in July 2019; thereafter, data based on EFS collection

Sources: APRA; banks' websites; CANSTAR; RBA; Securitisation System

20152010200520001995 20200

2

4

6

8

10

12

%

0

2

4

6

8

10

12

%

Fixed Housing Interest Rates3-year maturity

Swap rate

Advertised*

* Available to owner-occupiers

Sources: Banks’ websites; Bloomberg; CANSTAR; RBA

Housing Interest Rates*Outstanding loans

Owner-occupier

20182016 20203.0

3.5

4.0

4.5

5.0

5.5

%

Principal-and-interest

Investor

20182016 20203.0

3.5

4.0

4.5

5.0

5.5

%

Interest-only

* Average of variable-rate securitised loans to 2019; thereafter, averageof fixed and variable-rate loans, based on EFS data

Sources: APRA; RBA; Securitisation System

2015201020052000 20200

2

4

6

8

%

0

2

4

6

8

%

Australian Business Lending Rates*Average interest rate on credit outstanding

Large loans

Small loans

Large business(EFS)

Medium business(EFS)

Small business(EFS)

* Small loans are loans less than $2 million; large loans are loans $2million or more; new series from July 2019 are from the Economicand Financial Statistics (EFS) collection (see Statistical Table F7)

Sources: APRA; RBA

I N T E R E S T R AT E S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 2

Share Markets

20152010200520001995 202080

100

300

500

700

9001,100index

80

100

300

500

700

9001,100index

Share Price Accumulation IndicesLog scale, end December 1994 = 100

ASX 200

S&P 500

MSCI world

Sources: RBA; Refinitiv

20152010200520001995 202040

100

200

300

400

500600700index

40

100

200

300

400

500600700index

Advanced Economies’ Share Price IndicesLog scale, end December 1994 = 100

Japan

Euro area US

UK

Sources: Bloomberg; RBA

201920182017201620152014 202040

80

120

160

index

40

80

120

160

index

Australian Share Price Indices*Log scale, end December 2014 = 100

ResourcesFinancials

All other sectors

* ASX 200 companies

Sources: Bloomberg; RBA; Refinitiv

20152010200520001995 202040

100

200

500

1,000

1,500index

40

100

200

500

1,000

1,500index

Emerging Markets’ Share Price Indices*Log scale, end December 1994 = 100

Emerging Europe

Latin America

Emerging Asia

World

China

* MSCI indices; Shanghai Composite Index for China

Sources: Bloomberg; MSCI; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 3

Bond Issuance

201520102005200019951990 20200

100

200

300

400

500

600

$b

0

100

200

300

400

500

600

$bBonds on Issue in Australia

Non-government**

Australian government*

Stategovernments

* Excludes bonds purchased by the Australian Government** Excludes ADIs’ self-securitisations, includes government-guaranteed

bonds

Sources: ABS; AOFM; Bloomberg; KangaNews; Private PlacementMonitor; RBA; State Treasury Corporations

201520102005200019951990 20200

150

300

450

600

$b

0

150

300

450

600

$b

Total Non-government Bonds on IssueAll currency denominations

Financials

Non-financialcorporations

Non-residents*Asset-backed

securities

* Australian dollar-denominated bonds only

Sources: ABS; Bloomberg; KangaNews; Private Placement Monitor; RBA

Non-government Bond IssuanceGross issuance

AustraliaDomestic issuers*Non-resident issuers**

20

40

$b

20

40

$b

Offshore

20162012200820042000 20200

20

40

60

$b

0

20

40

60

$b

* Excludes ADIs’ self-securitisations** Offshore non-resident issuance includes Australian dollar-denominated

bonds only

Sources: Bloomberg; KangaNews; Private Placement Monitor; RBA

201520102005200019951990 20200

50

100

150

200

$b

0

50

100

150

200

$bNon-government Bonds on Issue in Australia

Asset-backed securities*

Non-financialcorporationsNon-residents

Financials

* Excludes ADIs’ self-securitisations

Sources: ABS; Bloomberg; KangaNews; Private Placement Monitor; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 4

US and Euro Area Corporate Bond Issuance*Gross issuance

USFinancialsNon-financials

100

200

300

400

500US$b

100

200

300

400

500US$b

Euro area

201620122008 20200

200

400

600

800

US$b

0

200

400

600

800

US$b

* September quarter-to-date

Sources: Dealogic; RBA

Emerging Market Corporate Bond Issuance*

Gross issuance

ChinaForeign currency-denominatedLocal currency-denominated

100

200

300

US$b

100

200

300

US$b

Other

201620122008 20200

75

150

225

US$b

0

75

150

225

US$b

* September quarter-to-date

Sources: Dealogic; RBA

B O N D I S S UA N C E

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 5

Exchange Rates

201420082002199619901984 202040

50

60

70

80

index

40

50

60

70

80

indexAustralian Dollar Trade-weighted Index*

Nominal

Real

* May 1970 = 100 for nominal; real indexed to equate post-floataverages; latest observations for real TWI are estimates

Sources: ABS; RBA; Refinitiv; WM/Reuters

Official Reserve Assets*

20

40

60

80

A$b

20

40

60

80

A$bOfficial reserve assets

Net foreign reserves**

20152010200520001995 2020-4

-2

0

2

4A$b

-4

-2

0

2

4A$b

RBA foreign exchange market intervention transactions***

* The reporting methodology for official reserve asset data changesin 2015

** 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 foreignexchange

Source: RBA

201420082002199619901984 202050

100

150

200

yen

0.40

0.80

1.20

1.60

US$,euro

Australian Dollar

Yen per A$(LHS)

(RHS)

US$ per A$(RHS)

Euro per A$*

* ECU per A$ until 31 December 1998

Source: Bloomberg

20132006199919921985 202050

90

130

170

210

250

yen

1.80

1.60

1.40

1.20

1.00

0.80

US$US Dollar

(LHS)Yen per US$

US$ per euro*(RHS, inverted scale)

* US$ per ECU until 31 December 1998

Sources: Bloomberg; Eurostat

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 6

20162012200820042000 202040

60

80

100

120

140

index

40

60

80

100

120

140

index

Selected Asian Currencies against the US Dollar31 January 2000 = 100

India

Thailand

South Korea

Malaysia

Singapore

Indonesia

Source: Bloomberg

20162012200820042000 202080

90

100

110

120

index

80

90

100

110

120

index

G3 Nominal Trade-weighted Indices1999–2020 average = 100

US dollar

Euro

Japanese yen

Sources: BIS; Bloomberg; Board of Governors of the Federal ReserveSystem

20162012200820042000 202060

70

80

90

100

110

120

index

9.0

8.5

8.0

7.5

7.0

6.5

6.0

yuanChinese Renminbi

(RHS, monthly average, inverted scale)Yuan per US$

(LHS, 2010 average = 100)Nominal effective exchange rate*

* Monthly average nominal rate calculated using BIS EER weights

Sources: BIS; Bloomberg; RBA

E XC H A N G E R AT E S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 7

Banking Indicators

Australian Bank ProfitsNet profit after tax Bad and doubtful debts charge

Major banks

6

12

$b Major banks

6

12

$b

Other Australian-ownedbanks

1.1

2.2

$b Other Australian-ownedbanks

1.1

2.2

$b

Foreign-owned banks

20132007 2019-1.5

0.0

1.5

$b Foreign-owned banks

20132007 2019-1.5

0.0

1.5

$b

Sources: APRA; RBA

20132007200119951989 2019-10

0

10

20

%

-10

0

10

20

%

Australian Bank Profitability*Return on shareholders’ equity after tax and minority interests

Majors

Other Australian-owned banks

* Fiscal years from 2003 onwards; prior data are as reported in banks’financial statements

Sources: APRA; Banks’ annual reports; RBA

20162012200820042000 20201.5

2.0

2.5

3.0

%

1.5

2.0

2.5

3.0

%

Major Banks’ Net Interest Margin*Domestic, half-yearly

* Data for a given period relate to banks’ public profit reports releasedin that half; IFRS basis from 2006, AGAAP prior; excludes St GeorgeBank and Bankwest prior to the first half of 2009

Sources: Banks’ financial reports; RBA

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 8

201520102005200019951990 20200

2

4

6

%

0

2

4

6

%

Banks’ Non-performing AssetsConsolidated global operations, share of on-balance sheet assets

Total*

Impaired

* Includes assets 90+ days past due that are well secured

Source: APRA

Banks’ Non-performing Assets

Domestic books

Share of all assets*

20142008 20200

1

2

3

%

Total

Share of assets by type**

20142008 20200

1

2

3

%

Personal(3%)

Business*(55%)

Housing(42%)

* Includes lending to financial businesses, bills, short-term and long-termdebt securities and other non-household loans

** Each category’s share of total domestic lending at March 2020 is shownin parentheses; shares may not add up to 100 due to rounding

Sources: APRA; RBA

Capital Ratios*Consolidated global operations of locally incorporated ADIs

Banks

20061993 20190

5

10

15

20

%

Total

Tier 1

Tier 2

CET1

Other ADIs

20061993 20190

5

10

15

20

%

Building societies

Credit unions

* Per cent of risk-weighted assets; break in March 2008 due to theintroduction of Basel II for most ADIs; break in March 2013 due to theintroduction of Basel III for all ADIs

Source: APRA

2016201220082004 20200

10

20

30

40

50

60

%

0

10

20

30

40

50

60

%

Funding Composition of Banks in Australia*Share of total funding

Domestic deposits

Securitisation

Long-term debt

Equity

Short-term debt**

* Adjusted for movements in foreign exchange rates; tenor of debt isestimated on a residual maturity basis

** Includes deposits and intragroup funding from non-residents

Sources: ABS; APRA; Bloomberg; RBA; Refinitiv; Standard & Poor’s

B A N K I N G I N D I C ATO R S

C H A R T PAC K | S E P T E M B E R 2 0 2 0 2 9