03/02/2026
📈 RBA Interest Rate Update
Today the Reserve Bank of Australia (RBA) lifted the official cash rate by +0.25% to 3.85% 👆the first increase in more than two years. 
Here’s what it means and why it happened 👇
🔥 Why the rate went up
Despite inflation having eased from its 2022 highs, prices started picking up again in the second half of 2025, especially because people are spending more and the economy is running close to full capacity. The RBA wants inflation back within its 2–3% target. 
🏡 What this means for homeowners
If your lender passes the increase on in full, mortgage repayments will rise for example, a $500,000 loan could cost roughly $79 more per month and a $1M loan about $158 extra per month. 
📊 What this tells us about the economy
• Strong consumer demand and a tight labour market are keeping inflation higher than the RBA wants.
• The move signals the RBA is prepared to act if inflation doesn’t ease sustainably.
💡 Bottom line
This isn’t a surprise markets were already pricing in a hike but it does signal that borrowing costs may stay elevated for a bit and that managing repayments is more important than ever. 
If you want help breaking down what this specifically means for your mortgage or strategy, send a DM happy to help! 💬
