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Australia's Central Bank Raises Interest Rate to 3.85% After 3 Cuts
- On Tuesday, the Reserve Bank of Australia monetary policy board raised the official cash rate by 0.25 percentage points to 3.85 per cent at its first 2026 meeting in Sydney.
- New inflation readings indicated the headline CPI rose 3.8% to December, with the Reserve Bank analysis noting private demand and capacity pressures drove the rate hike.
- Regional examples indicate that mortgage payments could increase by around $90 for a $600,000 loan if banks pass on the rate hike, affecting mortgage holders in Ballarat, Bendigo, Warrnambool, Newcastle, and Canberra.
- Markets had priced a 70 per cent chance of a rate hike, increasing pressure on Jim Chalmers, who said `It won't be the only influence... inflation will be a major focus`, Mr Chalmers told ABC Radio National.
- The board also warned that further increases are possible and said it will assess incoming data on a meeting-by-meeting basis.
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Australia's central bank raises interest rate to 3.85% after 3 cuts
Australia’s central bank has lifted its benchmark interest rate by a quarter percentage point to 3.85%, after three rate cuts last year and as inflation surges.
·United States
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Australia Becomes First Major Economy to Hike Rates This Year
(Bloomberg) — Australia’s central bank raised its key interest rate Tuesday, the first major monetary authority to hike this year, after judging inflation pressures were persistent enough to warrant renewed restraint.
·Canada
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Coverage Details
Total News Sources47
Leaning Left17Leaning Right10Center7Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 21%
R 29%
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