RBA Cash Rate Announcement May 2026

The Reserve Bank of Australia (RBA) has raised the cash rate by 0.25% to 4.35% - the third hike of 2026.

With Australia's annual Consumer Price Index (CPI) climbing to 4.6% in the March quarter, its highest level since September 2023, the RBA has acted again as it continues to try and rein in inflation.

For homeowners, this will add further pressure to already stretched budgets. It’s a timely reminder to make sure your loan is still working as hard as it should for you.

For a full breakdown, read today’s official statement on the RBA’s website.

Treasurer Jim Chalmers states that the war between the United States and Iran as the primary driver behind the latest inflation spike, warning that it could rise even further and drive fuel prices to historic highs.

Annual headline inflation accelerated sharply to 4.6% in the 12 months to March, a significant jump from 3.7% in February.

Underlying inflation, which the RBA prioritises when making decisions about the cash rate, remained steady at 3.3% but still above the target band of 2 to 3%.

Looking ahead, attention is turning to the Federal Budget on 12 May, where potential changes to capital gains tax and negative gearing could affect property investors. There’s also growing speculation we could see further rate rises in the coming months, with the next RBA decision scheduled for 16 June.

If you’re feeling the pinch or simply want to stay ahead, now is a good time to review your loan and overall financial position.

Whether you’re a homeowner or investor, we can help you understand your options and make a plan that suits your goals.

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