the thing that most people seem to miss is that these interest rates are NOT high compared to going back to 1960.
they are actually pretty normal - probably on the low side. God help people if interest rates do go to what we could consider as 'high' in the normal course of events. 'High' - I think one could probably opine would be 10%+ (just opinion)
Before 1960 interest rates were lower, but the world turned in 1960 - perhaps because of the pill, just that one change has had massive social and economic ramifications - and we can't undo that one.
Some insights into interest rates in Australia between 1960 and 1990, though an exact average for the entire 30-year period is not directly stated:
1. Interest rates were generally much higher in this period compared to more recent decades. The data shows that rates exceeded 10% for the first time in 1974 and remained above 10% until 1995[1].
2. The highest point during this period was in January 1990, when interest rates reached nearly 17%[1][5]. Specifically, one source mentions a peak of 17.5% in January 1990[5].
3. Looking at the earlier part of this period, we can see some lower rates. For example, in the 1960s, bank overdraft rates were around 6-7%[3].
4. The data shows a significant increase in rates during the 1970s and 1980s. By the early 1980s, rates had climbed substantially, with one source mentioning an all-time high of 16.50% in August 1982[4].
5. It's worth noting that there was considerable fluctuation during this period. For instance, in just 4 years from January 1990 to June 1994, rates dropped from the high of 17% to 8.75%[1].
While an exact average for the entire 30-year period is not provided, we can infer that it would be significantly higher than current rates, likely in the double digits given the extended period of rates above 10% from 1974 onwards. The period saw a general trend of increasing rates from the 1960s through the 1980s, peaking at the very end of this timeframe in 1990.
[1] https://www.orangefinance.net.au/historical-interest-rates/
[2] https://www.rba.gov.au/statistics/historical-data.html
[3] https://www.rba.gov.au/publications/annual-reports/rba/1966/aus-int-rate-sec.html
[4] https://www.ceicdata.com/en/indicator/australia/long-term-interest-rate
[5] https://www.unloan.com.au/learn/history-of-mortgage-rates-in-australia-where-they-might-go
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