RBA Cash Rate Announcement March 2026

The Reserve Bank of Australia (RBA) has raised the cash rate by another 0.25 percentage points to 4.10% at its latest meeting, as inflation pressures continue to rise.

Read today’s official statement on the RBA’s website.

The Consumer Price Index (CPI) rose 3.8% in the 12 months to January, unchanged from the 12 months to December 2025.

Meanwhile, underlying inflation (as represented by the trimmed mean) was 3.4% in the 12 months to January, slightly up from 3.3% in the 12 months to December.

While inflation has eased significantly since its peak in 2022, it picked up again during the second half of 2025. The RBA has said it remains focused on returning inflation sustainably to its 2–3% target range.

Australia’s economy expanded by 2.6% in the December quarter. However, productivity remained flat - a development that could add to inflationary pressures over time.

Global developments are also being closely watched. The escalating conflict in the Middle East could potentially affect energy prices and global trade, which may flow through to inflation and interest rate expectations.

RBA governor Michele Bullock recently said it was too soon to tell what impact the conflict may have on Australia’s economy.

“It’s too early to say what the impact will be … [RBA] staff will take some time to make sense of what it could mean for inflation here,” she said.

“A supply shock could, for example, add to inflation pressures and the potential implications for inflation expectations are something we are very alert to.”

“But at the same time, a prolonged impact on energy markets could have adverse effects on global economic activity and result in downward pressure on inflation. It is not obvious how this might play out.”

February’s rate rise has added between $75 and $150 a month to repayments for borrowers with loans of $500,000 to $1 million. Following today’s announcement, many mortgage holders may feel the squeeze even more.

It may also be worth reviewing your home loan or chatting with us about your finance options. We may be able to find you a more competitive interest rate with another lender or renegotiate your home loan with your current bank. Get in touch today to explore your options.

The next cash rate decision will be announced on 5 May.

Need help understanding what this announcement means for you? Contact us today.