17 Feb 2026 | 5 Mins Read
Australia central bank cautious after rate hike
Flipitmoney
The Reserve Bank of Australia raised the cash rate to 3.85% in a 25 basis points hike, concluding inflation would remain above target without action. The board is concerned inflation could persist near 3.4% this quarter and is unsure if further tightening is necessary. A second hike is forecast this quarter, with core inflation expected to be 3.2% by Christmas.