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RBA interest rates decision: Reserve Bank increases cash rate to 3.85% in blow to mortgage holders

03.02.2026 05:49 | The Guardian World

Shortest rate-cutting cycle in the RBA’s modern history ends after unexpected jump in inflation Follow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe Reserve Bank has hiked rates for the first time in over two years, with mortgage holders to bear the brunt of dealing with an unexpected jump in inflation through the second half of 2025.The RBA monetary policy board announced on Tuesday at the end of its two-day meeting that the cash rate target would lift to 3.85%, from 3.6%. Continue reading...

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