02/05/2026
Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate to 4.10% at its March meeting, many lenders passed on the 0.25% increase in full. It marked the second consecutive cash rate hike of the year.
There’s now widespread talk of more cash rate increases to come, as the global energy shock in the Middle East threatens to push Australia’s inflation towards 5%. Some economists are even anticipating three more interest rate hikes in May, June and August, bringing the cash rate to a level not seen since the global financial crisis (GFC).
If the RBA does increase the cash rate again in May, the 75 basis point increase since the start of the year would add roughly $239 a month to repayments on a $500,000 home loan, or $478 a month on a $1 million loan.
Treasurer Jim Chalmers has acknowledged the pressures faced by Australians grappling with higher fuel prices and cost of living pressures, and noted savings will be delivered in the May budget.
The next cash rate decision will be announced on 5 May.
