Reserve Bank hikes interest rates in unanimous decision

The withdrawal of energy rebates, seasonality swings in holiday costs and wage growth powered by public sector demand weren’t strong enough to counter the rising concerns of the RBA, writes KPMG Australia Chief Economist Brendan Rynne.

The Reserve Bank of Australia (RBA) Board has opted for a more aggressive approach to re-taming inflation, lifting the cash rate by 0.25 percent to 3.85 percent in its February meeting. It was a decision which the markets were hotly anticipating. it was a tough call for the Reserve Bank to make, especially so early into the new year. The circumstances of noisy data, transitory cost influences and steady (albeit soft) downwards pressure at the current marginally contractionary cash rate ult...

Sign in below or register now to read the full article

Authors: Brendan Rynne

Published Date: 04 February 2026