10/02/2026
After keeping rates steady in November, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 3.85% today.
Inflation, which had eased from its 2022 peak, picked up again in the second half of 2025. The RBA says this partly reflects stronger household spending, investment and housing activity, alongside ongoing pressure in the labour market.
While back in November it seemed as though rates could stay stable for a while, the momentum in the economy has meant the RBA judged a rate rise was necessary. They’ll continue watching domestic and global trends closely to guide future decisions.
It’s disappointing news for borrowers. Households hoping for more relief as cost-of-living pressures continue, will feel the impact, depending on the size of the increase the Banks choose to pass on.
What this may mean for your mortgage if banks pass on the full rate:
▪️$500,000 loan: $80 extra per month
▪️$750,000 loan: $120 extra per month
▪️$1,000,000 loan: $160 extra per month
(These figures assume a starting rate of 5.76%)
Changes like this can feel a little challenging, but we are always here to fight to find you the right rate so you can sit back and relax.
