Cash Rate History
2020 – 2026
Recent Decisions
Last 12 months
DateDecisionRateChange
May 6, 2026Increased4.35%+0.25%
Mar 18, 2026Increased4.10%+0.25%
Feb 4, 2026Increased3.85%+0.25%
Nov 5, 2025On hold3.60%—
Sep 2, 2025Decreased3.60%−0.25%
Jul 1, 2025Decreased3.85%−0.25%
May 20, 2025Decreased4.10%−0.25%
Feb 18, 2025Decreased4.35%−0.25%
What the May Hike Means for You
Variable Mortgage Holders
Most lenders will pass on the full 0.25% within 1–2 weeks. On a $700,000 loan with 25 years remaining, this adds approximately:
+$108/month
Savers Benefit
High-interest savings accounts and term deposits will likely increase. Some online savings accounts already offer over 5% p.a. Check your current rate.
Up to 5.3% p.a.
Fixed Rate Holders
If your fixed rate expires in the next 12 months, you'll likely roll onto a higher variable rate. Now is the time to compare refinancing options.
Act before July
2026 YTD Cumulative Impact
Three hikes totalling 0.75% in 2026 mean a $600,000 variable loan now costs roughly $270 more per month than it did in January.
+$270/mo on $600K
2026 RBA Meeting Calendar
All decisions
February 4, 2026
Board Meeting
+0.25% Hike
March 18, 2026
Board Meeting
+0.25% Hike
April 29, 2026
Board Meeting
On Hold
May 6, 2026
Board Meeting
+0.25% Hike ✓
June 17, 2026
Board Meeting
▶ Next Meeting
August 4, 2026
Board Meeting
TBC
September 1, 2026
Board Meeting
TBC
November 3, 2026
Board Meeting
TBC
December 1, 2026
Board Meeting
TBC
Frequently Asked Questions
What is the current RBA cash rate in Australia?
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The current RBA cash rate is 4.35% as of May 6, 2026. The Reserve Bank of Australia raised the rate by 25 basis points at its May board meeting, citing persistent inflation above the 2–3% target band. This is the highest rate since November 2023 and marks the third consecutive increase in 2026.
When is the next RBA meeting in 2026?
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The next RBA board meeting is scheduled for June 17, 2026. Most market economists forecast the RBA will hold rates steady at this meeting while monitoring inflation data, though Westpac has flagged the possibility of an additional hike. The RBA meets approximately 8 times per year.
How does the cash rate affect my mortgage?
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Variable-rate mortgage holders are most directly affected. When the RBA raises the cash rate, lenders typically increase variable home loan rates within 2–4 weeks. A 0.25% increase adds roughly $40–55 per month per $300,000 of outstanding loan balance. Fixed-rate loans are unaffected until the fixed term expires. Use our calculator on the right to see your exact repayment change.
What is the RBA cash rate history?
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The RBA cash rate hit a record low of 0.10% in November 2020 during COVID-19 stimulus. It then rose rapidly from May 2022, reaching 4.35% in November 2023. After a series of cuts through 2024–2025 that brought it back to 3.60%, the RBA has raised rates again in 2026 — three times — returning to 4.35%.
Should I fix or stay variable given current rates?
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This depends on your individual circumstances. If you believe rates will continue rising, fixing provides certainty. Most 2-year fixed rates are currently offered at around 5.5–5.8%, slightly below variable rates, providing some protection. However, fixed loans limit your flexibility to make extra repayments. Speak to a licensed mortgage broker to assess your options — compare brokers here.
How does the cash rate affect savings accounts?
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Higher cash rates generally benefit savers. High-interest savings accounts with the major banks now offer between 4.8% and 5.3% p.a. after the May hike. Online banks and neo-banks tend to pass on rate increases faster than the big four. Term deposits have also risen — 12-month terms are currently offering around 4.9–5.1%.
Repayment Impact Calculator
See how the May 2026 rate hike affects your mortgage repayments.
4%6.48%9%
Monthly Repayment
$4,231
Principal + interest
Before May hike$4,123
Extra per month+$108
Annual extra cost+$1,296
Total interest cost$669,800
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