05/05/2026
RBA cash rate raised to 4.35%
At its meeting today, the Reserve Bank of Australia (RBA) has increased the cash rate by 0.25%, with the official cash rate now sitting at 4.35%.
Today’s decision reinforces the RBA’s ongoing priority to bring inflation back within its 2–3% target range. The decision was supported by data released last week which showed inflation has continued to increase, largely due to global conflict-driven supply issues and higher fuel costs.
The data highlighted:
• Headline inflation has risen to 4.6% for the 12 months to March 2026, up from 3.7% in February 2026.
• Underlying (trimmed mean) inflation sits at 3.3%.
Fuel price inflation can take time to unwind, meaning price pressures may remain elevated even if broader economic conditions begin to stabilise. As the RBA navigates this more complex environment, staying informed about interest rate movements and what they mean for your financial position is increasingly important.
Whether you’re considering purchasing a home, refinancing to review your loan structure, or exploring investment opportunities, now is a timely opportunity to review your current lending arrangements and future plans. We are here to help 02 9600 8600
