At its latest meeting, the RBA announcement has increased the cash rate to 4.10 per cent.
Following this RBA announcement, we’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.
The Board observed that while inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025. Information since the February meeting suggests that some of the increase in inflation reflects greater capacity pressures.
The conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation. As a result, the Board judged that there is a material risk that inflation will remain above target for longer than previously anticipated.
What this could mean for borrowers
For anyone on a variable rate home loan, a cash rate increase typically flows through to loan repayments, though the timing and size of that change depends on individual lenders. Banks don’t always move in lockstep with the RBA, and some may pass on the full increase while others adjust more gradually or by a different margin.
If you’re on a fixed rate, this announcement won’t affect your repayments for the remainder of your fixed term — but it’s a useful signal to start thinking about what your options might look like once that term ends.
Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.
We’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.
Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.
