Reserve Bank of Australia posts $8.5B loss

• The Reserve Bank of Australia posted an $8.5 billion accounting loss for 2025-26, driving its negative equity position to $11.3 billion.
• The central bank expects it will not pay a dividend to the federal government for at least a decade while it restores its capital.
• The financial result was driven by a $9.9 billion write-down on government bonds and foreign exchange holdings caused by rising global yields and a stronger currency.

The Reserve Bank of Australia entered an $11.3 billion negative equity position after recording an $8.5 billion accounting loss for the 2025-26 financial year.

The financial result was driven by a $9.9 billion unrealised write-down on the central bank's government bond and foreign exchange portfolio amid rising global yields and a stronger Australian dollar.

"This negative position does not affect our operations, nor our ability to perform our policy functions, but the governance board considers it important that the RBA’s capital be restored over time," said Reserve Bank of Australia Governor Michele Bullock.

The central bank reported an 8% increase in employee headcount over the past year to 2,201 staff, alongside a budget blowout on its 65 Martin Place headquarters renovation from $260 million to $1.2 billion due to asbestos removal.

The Australian central bank last paid an annual dividend to the federal government in the 2020-21 financial year, when it transferred $2.7 billion.

Global bond yields recently reached 15-year highs in Australia and 24-year highs in the United States, driven by government debt levels, interest rate settings, and artificial intelligence investments.