The Reserve Bank of Australia is $11.3 billion in the red after posting its second-largest annual loss on record as rising bond yields smashed the value of its portfolio, with the cash-strapped central bank unlikely to pay a dividend to the federal government for at least a decade.
The RBA’s 2025-26 annual report also showed employee numbers continuing to surge at the central bank, with headcount increasing 8 per cent over the past year alone to 2201. Since 2021, headcount has jumped 60 per cent, as the central bank has brought on legions of corporate support and technology staff.
The report showed that the RBA posted an $8.5 billion account loss in 2025-26, driven by a $9.9 billion write-down in the unrealised value of its government bond and foreign exchange portfolio, which took a hit from the higher Australian dollar and the sharp rise in global yields.
The loss meant the bank fell deeper into negative equity last financial year, with the RBA’s liabilities outstripping its assets by $11.3 billion.
The outcome underscores the long tail of the RBA’s pandemic-era bond buying program, which has left it exposed to rising interest rates. The central bank will need to spend the next decade repairing its balance sheet before it can resume paying dividends to the federal government.