03/02/2026
RBA Raises Cash Rate to 3.85%
The Reserve Bank of Australia has increased the official cash rate by 25 basis points to 3.85% to reinforce its efforts to bring inflation back within the 2–3% target range.
Inflation remains above target, driven by high housing costs, energy prices, food expenses, and continued strength in consumer spending. While inflation has eased from its peak, it has not slowed enough to ease concerns.
The RBA has indicated that further rebalancing of supply and demand is needed to achieve sustained price stability.