RBA has increased the cash rate
In a widely anticipated decision, the Reserve Bank of Australia (RBA) raised the cash rate by 25 basis points during its February monetary policy meeting, bringing the rate to 3.85%. The decision to increase the cash rate is based on rising inflation, as recent data revealed that the consumer price index (CPI) increased to 3.8% for the 12 months leading up to December 2025, up from 3.4% recorded in November 2025. The trimmed mean inflation rate, a key indicator of underlying inflation trends, rose to 3.4%. This figure is notably above the RBA’s target range of 2% to 3%, indicating growing inflationary pressures in the economy.
The RBA is vigilant in monitoring inflation data and is committed to continuously assessing economic conditions. In its latest statement, the RBA emphasised its dedication to returning inflation to within its established target range. This commitment reflects the RBA’s broader objective of ensuring stability, which is crucial for sustainable economic growth.
As mortgage rates are directly affected by changes in the cash rate, borrowers are encouraged to stay informed about the RBA's decisions. Your bank will notify you directly of any changes.
The Reserve Bank of Australia’s next schedule meeting
Looking ahead, the next meeting is March 16th and 17th, where further monetary policy decisions will be discussed.