Economic
Reserve Bank Rate Decision Ups Cash Target to 3.85%
The Reserve Bank of Australia increased its cash rate target by 25 basis points to 3.85% to address renewed inflation pressures and capacity constraints in the economy.
At a recent meeting, the Reserve Bank of Australia's Monetary Policy Board decided to raise the cash rate target by 25 basis points to 3.85%. This move reflects a reassessment of inflationary and capacity pressures, with underlying inflation picking up in late 2025 despite earlier easing. The Board judged that demand continues to outpace available supply, keeping inflation above the 2–3% target range for longer than expected. The decision signals a more restrictive monetary stance, aimed at cooling domestic demand and anchoring inflation expectations without triggering a sharp downturn.
- Status
- active
- Location
- Sydney, Australia
- Date added
- 2026-03-26 06:37 UTC
- Last updated
- 2026-03-26 06:37 UTC
- Source
- Reserve Bank of Australia
- Connected threats
- Not provided