RBA Cash Rate Forecast 2026 - Where Are Interest Rates Headed?

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The RBA cash rate target is 4.35% following three consecutive 0.25% hikes in February, March, and May 2026. This fully reversed the easing that delivered three cuts during 2025 (February, May, and August), which had brought the rate down from 4.35% to 3.60%. The rate has now returned to the November 2023 peak

Frequently Asked Questions

When is the next RBA rate decision?

The next RBA meeting is 16–17 June 2026, with the decision announced at 2:30pm AEST on 17 June. After three consecutive hikes to 4.35%, a pause is the most likely outcome.

Will there be more rate hikes in 2026?

After three consecutive hikes to 4.35% (the November 2023 peak), most economists expect the RBA to pause at the June meeting. A fourth hike to 4.60% remains possible (~20% market probability) if inflation stays above 3.5%. The rate peak for this cycle is expected at either 4.35% or 4.60%.

When will rates start coming down again?

The earliest plausible cut is late 2026 (September–December), but only if inflation data shows a sustained return toward the 2–3% target. The more likely scenario is that easing resumes in early-to-mid 2027. The RBA has been clear it will not cut prematurely after the 2025 experience.

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