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Economic Buzz: Australia central bank lifts rates on inflation concerns
03-Feb-2026 10:55
The Reserve Bank of Australia raised the cash rate by 25 basis points to 3.85% at its first 2026 meeting, in line with expectations and marking its first hike since November 2023. The move reflects renewed inflation pressures from higher service costs and a tight labor market. The RBA said inflation is likely to remain above its 2'3% target for some time, despite progress over the past year. Future policy decisions will remain cautious and data-dependent, balancing inflation control with economic growth.

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