17/03/2026
The Reserve Bank has lifted the cash rate by 0.25%, reinforcing its commitment to keeping inflation under control.
Despite global uncertainty, the move reflects rising concern around inflation expectations, mainly driven by higher energy prices and ongoing geopolitical tensions.
Headline inflation remains above target at 3.8%, and with fuel costs beginning to influence household expectations, the risk is that inflation becomes embedded.
What does this mean?
• The RBA is focused on preventing inflation from becoming persistent
• Economic conditions are still strong enough to handle tighter policy
• A solid labour market is giving policymakers flexibility to act
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