The Shortest History Of Australia’s Long Term Interest Rates Ever Told

Why are the average rates in Australia high?

We were known as a high interest rate country throughout the post-war period, mainly to keep some strength in the Aussie dollar, as higher rates attracted overseas funds and capital to gain higher returns. This kept demand in Aussie dollars above what it would have otherwise been. This was RBA and government policy back then. I think we've been the 6-7th highest traded currency in the world for several decades. Credit should also go to the mining industry where demand for our raw materials has also kept demand for the AUD higher.

Fancy that, little ol' Australia, with less than 20m population during the post-war period, being a top 10 traded global currency!