RBA increase rates again by another 0.25%.
New Reserve Bank Cash Rate, 4.35%
For the third consecutive meeting, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points, bringing it to 4.35%. Despite previous hikes, inflation remains stubbornly high, prompting the Board to take further action to steer the economy back toward its 2–3% target band.
Why Did Rates Go Up Again?
The RBA’s decision was driven by two primary factors:
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Inflation is Too High: The “trimmed mean” inflation (the RBA’s preferred core measure) sat at 3.3% for the year ending March 2026. While more stable than headline figures, it remains consistently above the target.
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Energy and Transport Surges: Headline inflation jumped to 4.6%, largely due to rising global oil prices fueled by ongoing conflict in the Middle East. Despite mainstream Australians feel Oil Prices and the conflict in Middle East is outside of their control, the prices do affect our inflation.
The RBA’s Stance
The minutes from the March meeting signaled this tightening cycle was likely. The Board has maintained a firm stance, stating that a “clear commitment” to lowering inflation is essential to avoid more aggressive contractionary policies later. With global energy prices adding new pressure, the Board judged that a further increase was necessary to meet their objectives in a reasonable timeframe. 
What This Means for You
Successive rate rises can significantly impact monthly household budgets and borrowing capacity. If you are concerned about how this 4.35% cash rate affects your home loan repayments or future financial plans, it is a critical time to review your strategy.
Take Control of Your Finances
If you are feeling the pressure of these back-to-back increases, you don’t have to navigate it alone. I can help you:
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Calculate the exact impact on your monthly repayments.
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Compare your current rate against the broader market to ensure you aren’t paying more than necessary.
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Explore refinancing options or restructuring to find more breathing room in your bud
To read the Reserve Bank full Report https://www.rba.gov.au/media-releases/2026/mr-26-12.html
If the increase is going to have an impact on your monthly cash flow and your mortgage repayments are becoming a point of stress, it is time to discuss your options, Give us a call and get a health check on your home loan.