Reserve Bank of Australia Raises Cash Rate to 4.85%

The Reserve Bank of Australia (RBA) increased its cash rate target by 25 basis points to 4.85 percent, marking the fifth rate hike in 2026. This decision was made by the Monetary Policy Board, citing persistent inflation pressures, partly driven by higher fuel and commodity prices amid the conflict in the Middle East. The RBA forecasts inflation to remain elevated through much of 2027.