RBA Lifts Cash Rate to 3.85%
By Sophia Rodrigues
Published On 03 Feb 2026 , 02:37 PMThe Reserve Bank of Australia raised the cash rate by 25bps to 3.85%, marking a quick turnaround from a 25bps cut delivered in August 2025.
The outcome is in line with CB Intel's expectation since late November, the RBA is likely to lift the cash rate as soon as February. The decision was unanimous, also in line with CB Intel's expectation.
The rate rise was in response to an acceleration in inflation, which "reflects greater capacity pressures."
"As a result, the Board considers that inflation is likely to remain above target for some time," the RBA's statement said.
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