3 weeks ago
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February 3, 2026 — 2:37pm
The Reserve Bank has lifted official interest rates for the first time since 2023.
After its first meeting of the year, the bank lifted the cash rate by a quarter of a percentage point to 3.85 per cent, adding about $100 a month to the repayments on a $600,000 mortgage.
It comes after a surprisingly high inflation read of 3.8 per cent for the 12 months to December and unemployment falling to 4.1 per cent.
In a unanimous decision, the bank said while inflation had eased substantially from its peak in late 2022, there had been a “material” increase through the second half of last year.
“The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures,” it said.
“As a result, the board considers that inflation is likely to remain above target for some time.”
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