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The Reserve Bank of Australia raised the cash rate by 0.25 percentage points to 4.10% at its 16–17 March 2026 meeting. This was the second consecutive hike in 2026, following the February increase from 3.60% to 3.85%. The cash rate is now back at the same level it was in February
Since December 2025 (when the rate was 3.60%), two 0.25% hikes have added approximately $184/month on a $600,000 loan, $230/month on $750,000, and $306/month on $1,000,000. That's $2,208 to $3,672 extra per year depending on your loan size.
It's possible but not the base case. Most economists expect the RBA to pause at 4.10% to assess the impact of the two hikes. However, if Q1 2026 inflation data remains stubbornly high, a further increase to 4.35% (the 2023 peak) cannot be ruled out.
If you're on a rate above the market average (6.22% for O/O variable), refinancing to a more competitive rate could save hundreds per month regardless of what the RBA does next. Use a refinance calculator to compare your current rate against available offers.
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