RBA Delivers Third Hike in a Row

By Sophia Rodrigues

Published On 05 May 2026 , 02:35 PM

The Reserve Bank of Australia lifted the cash rate by 25bps to 4.35%, delivering its third straight rate hike and taking the rate back to the post-Covid peak.

The RBA noted higher fuel prices are adding to inflation, and "there are indications that this is likely to have second-round effects on prices for goods and services more broadly."

"In light of these considerations, the Board assessed that inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including to inflation expectations. It was therefore judged appropriate to increase the cash rate target."

The decision was made by a majority 8-1 vote.

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