Latest decision comes amid global conflict, sticky inflation and tight employment conditions
The Reserve Bank of Australia (RBA) under governor Michele Bullock has increased the cash rate to 4.1%.
In announcing the widely anticipated decision, the Monetary Policy Board said: “While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025.
“Information since the February meeting suggests that some of the increase in inflation reflects greater capacity pressures. In addition, the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation.
“Short-term measures of inflation expectations have already risen. As a result, the Board judged that there is a material risk that inflation will remain above target for longer than previously anticipated.”
More to come.
