The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.10% at its March 2026 board meeting, delivering a second consecutive increase. The bank identified risks to energy inflation stemming from Middle East conflict as a factor in its assessment.
Variable-rate mortgage holders, who had benefited from three rate cuts in 2025, face a further increase in their monthly repayments following the decision. At 4.10%, the cash rate is at its highest level since May 2025, though still below the 4.35% peak of the previous tightening cycle.
BOARD VOTE
The decision was taken by a 5-4 majority vote.