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Economic Buzz: RBA reverses easing cycle, lifts benchmark rate to 3.85%
17-Feb-2026 10:45
The Reserve Bank of Australia lifted the cash rate by 25 bps to 3.85% at its first 2026 meeting, marking its first hike since late 2023 as persistent services inflation and a tight labour market rekindled price pressures. Officials cautioned that inflation may stay above the 2'3% target for a while longer, stressing that future moves will be strictly data-driven as the bank balances inflation control with sustaining economic momentum.

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