The Reserve Bank of Australia (RBA) has hiked the cash rate on Tuesday afternoon in the wake of last week's higher-than-expected inflation read and continuous jobs market strength.
The move has likely pricked the ears of deposit holders and weighed on variable rate home loan holders. However, there's no guarantee lenders will pass on rate hike in full to savings account, term deposit, or home loan interest rates.
Keep an eye on how your bank or lender is responding:
- RBA rate hike February 2026: Is your lender passing it on?
- Which banks are lifting savings rates after the RBA February rate rise?
Here's how Australian economists, experts, and lenders are responding to the February rate hike.
The Savings Tip Jar podcast breaks down RBA hike
Published 3:55pm, Wednesday
Apologies for being largely absent today, readers. Wednesdays are when Savings editor Dominic Beattie and I record our weekly episode of the Savings Tip Jar podcast - and it’s now ready for your ears.
This week, we sat down with Savings scribe and in-house economist Harry O’Sullivan to break down everything you need to know about the RBA’s latest move. You can find it below:
With the dust now mostly settled, I’ll leave you here and hand things over to our brilliant team of Savings journos, who’ll be busy continually updating the site as more banks and lenders respond to the RBA’s February call.
Head to the links above for the latest on which institutions are passing on the rate hike (or not), and when it could hit your home loan or savings account.
NAB, Westpac, and Macquarie respond
Published 9:52am, Wednesday
Welcome back to another day of RBA fallout! Overnight, the two remaining big four banks have announced their move on home loan interest rates.
NAB will lift variable mortgage rates from 13 February and Westpac will do the same from 17 February, in line with their histories of implementing RBA moves 10 and 14 days respectively after the central bank's announcement.
Macquarie, meanwhile, broke step by waiting 17 days to move and implementing rate hikes across both its variable rate home loan and deposit book on 20 February.
"Last year, we were proud to be the fastest major bank to pass through the RBA’s rate cuts to our customers so they could start saving on their home loan repayments in just three days," Macquarie head of personal banking Ben Perham said.
"With rates now on the rise, we want to help our home loan customers adjust to the higher interest rate environment, so we’ve decided to wait until 20 February before passing through this rate increase.
"The new rates for home loan and deposit customers will come into effect on the same day - as we have done for a number of years.”
That's all for today, folks
Published 7:29pm, Tuesday
Thanks for keeping me company today savvy savers. I'll see you all again in the morning with more updates on the February RBA cash rate hike.
ANZ responds to RBA rate hike
Published 7:26pm, Tuesday
Following CommBank was the smallest big four bank - ANZ - which will also increase variable home loan interest rates from 13 February.
CommBank reacts to RBA rate hike
Published 5:35pm, Tuesday
The nation's largest lender was the first major bank to announce its reaction to the RBA rate hike, confirming to will be passing it on in full to variable rate home loan borrowers from 13 February.
Read more: RBA hikes cash rate to 3.85% – Here’s how Australia’s big 4 banks responded
Chalmers defends fiscal policy's role in inflation resurgence
Published 5:31pm, Tuesday
Treasurer Jim Chalmers has defended against criticism that government spending and fiscal stimulus has driven the inflationary uptick that led to today's rate hike.
"The board’s statement today does not mention government spending," Dr Chalmers said. "It makes it very clear the pressure on inflation is coming from private demand."
He said that private demand growth has increased more than 400% on an annual basis over the year to September, while public demand growth has slid at least two thirds year-on-year.
"The Albanese Government’s three main economic priorities are addressing inflation, productivity and global uncertainty and today’s decision highlights why this is so important," he continued.
NAB reconfirms forecast of May rate hike
Published 5:15pm, Tuesday
NAB chief economist Sally Auld has asserted the big bank's prediction of another rate hike in May, noting there lies risk of a March hike or a 50 basis point increase.
"A narrative which reflects an economy where [quoting the RBA] '…private demand is growing more quickly than expected, capacity pressures are greater than previously assessed and labour market conditions are a little tight' means that this is unlikely to be a 'one and done' scenario for the RBA," Dr Auld said.
Bullock addresses expectations AI could impact productivity
Published 4:11pm, Tuesday
Ms Bullock said neither the Prime Minister nor the Treasurer has asked her not to comment on fiscal policy and refuted suggestions the treasury department and the RBA 'tell each other what to do'.
She doesn't blame anyone for the supply side issue or productivity challenge.
"A lot of people have a lot of hope about AI, but we can't do anything about productivity," she said.
Hitting inflation target "not a science, it's an art"
Published 4:05pm, Tuesday
Ms Bullock said the board will observe what will happen in financial conditions in the wake of Tuesday's hike and refused to rule more hikes in or out.
She noted the August rate cut made sense at the time, saying, "circumstances change, we change," and reiterated the board's strategy to tread the 'narrow path' of reducing inflation without wiping out economic and labour market gains realised in recent years.
"It was always going to be difficult when you're getting into a position of balance," she said.
Ms Bullock says RBA is "committed, but ... cautious"
Published 3:54pm, Tuesday
"The board doesn't have a particular path in mind," Ms Bullock said.
"The two [inflation] numbers that we've seen for September and December are too high quarterly numbers - you can't have those quarterly numbers if you want [inflation] to be back in the band.
"We think there are some temporary numbers that are going to come down, and that's going to help, and hopefully a little bit of tightening in financial conditions will also help."
Separately, she said the board isn't expecting to invoke multiple hikes in order to suppress inflation quickly.
"Could we do a lot of rate rises and bring inflation back down very quickly? Possibly, I don't know, but it could have big implications for the unemployment rate and the economy," she said.
RBA 'not driven' by market expectations
Published 3:43pm, Tuesday
Ms Bullock said the RBA board did not consider a 50 basis point hike in February, and notes she won't be driven by market expectations when the board comes together in May - a meeting that's expected to bring potential for another hike.
"The board will monitor and make its own decisions and the market is taking a view on that, which is fine," she said.
"I don't dismiss market expectations but I'm also not driven by them."
RBA governor Michele Bullock addresses media
Published 3:38pm, Tuesday
RBA governor is now addressing the nation at a press conference in the wake of the central bank's decision to hike the cash rate in February.
"I know this is not the news that Australians with mortgages want to hear, but it's the right thing for the economy," she said.
"The economy is closer to its supply capacity than we previously thought ... years of weak or no productivity growth is a big part of that story."
RBA cash rate hike 'going to hurt': Expert
Published 3:34pm, Tuesday
Zyft consumer finance expert Joel Gibson said today's cash rate decision will be passed down to consumers, mortgage holders, and renters, stretching household budgets.
"Today's rate hike is going to hurt, and there's no way around that," he said.
"For the 35% to 40% of Australians with a mortgage, we're talking an extra $115 a month on the average $694,000 loan.
“Renters won’t escape either. Landlords will pass on what they can. Rents are still rising, with median weekly rents nationally around $650 and climbing, squeezing household budgets further as vacancy rates stay tight and supply remains limited. That’s slamming the door shut on anyone trying to get a foothold in the market right now.
The finance expert notes that 'real savings' come from reviewing ongoing, unavoidable costs like energy, insurance, and groceries.
“Australians are now spending about $198.16 a week on groceries, which adds up to more than $10,300 a year - that’s 14% of the median wage in Australia," he continued.
RBA rate hike may temper house prices: Cotality
Published 3:13pm, Tuesday
Property data firm Cotality expects today's cash rate hike to take some of the heat out of the stratospheric housing market as it drags on affordability and wipes nearly $20,000 from a typical household's borrowing power:
"The average new mortgage is close to $700,000, and a full pass through of rates will add around $110 per month to repayments, assuming typical market interest rates on a 30-year mortgage," Cotality head of research Gerard Burg said.
"Similarly, the hike will reduce the borrowing capacity of buyers, with a median income household in Australia losing around $18,000 from their mortgage limit.
"This could push an increasing number of buyers from mid-tier properties to lower quartile ones, leading to higher demand on the urban fringes and regional markets close to capital cities."
Though, he tempered that there will be a range of factors influencing housing prices this year, including slower population growth, first home buyer benefits, and a prolonged undersupply of housing.
"Construction and labour costs, along with labour availability, is limiting the new supply of housing across the country, with interest rates unable to influence this trend," he said.
"Similarly, dwelling listings remain well below trend, with uncertainty unlikely to draw potential sellers from the sidelines."
Looking at the housing market in recent times, prices have lifted around 9% across the nation since the RBA first cut the cash rate in February last year, boosting the median value by $75,000.
"Inflation is likely to remain above target for some time": RBA
Published 2:56pm, Tuesday
The RBA board made its decision to hike on the basis that inflation is expected to remain higher than its 2% to 3% target range "for some time," as it noted in its post meeting statement.
"While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025," it said.
"While part of the pick-up in inflation is assessed to reflect temporary factors, it is evident that private demand is growing more quickly than expected, capacity pressures are greater than previously assessed and labour market conditions are a little tight.
"The board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome."
RBA publishes new economic forecasts
Published 2:49pm, Tuesday
In addition to its cash rate hike, the RBA has also provided punters with its quarterly insight into what it's expecting of the economy going forward.
It now expected trimmed mean inflation to rise from its latest 3.3% annual read to 3.7% by mid-2026, before retreating to the RBA's targetted range of 2% to 3% by mid-2027.
Unemployment is forecast to slowly rise, lifting from its current 4.1% to 4.3% by year-end and 4.6% by mid-2028.
GPD is tipped to slide to 1.6% by June 2027 and hover there for the foreseeable future, while wages are tipped to slip slightly before staying at 3.1% for sometime.
RBA hikes cash rate
Published 2:30pm, Tuesday
The RBA has decided to hike the cash rate by 25 basis points to 3.85% in February. All of the board's nine members voted in favour of the move.
RBA February cash rate decision imminent
Published 2:23pm, Tuesday
The RBA board will publish its post meeting statement in a matter of around seven minutes, and no doubt many Aussies (including this journo) are holding their breath. Once the meeting's outcome is announced at 2:30pm AEDT, the market will have an hour to digest the news before RBA governor Michele Bullock fronts the press at 3:30pm AEDT.
RBA rate hike may impact mortgage refinancing activity: Expert
Published 2:13pm, Tuesday
A cash rate hike could lead to an uptick in home loan refinancing, according to Equifax executive general manager Moses Samaha.
"In 2022, the reaction to the first rate hike was immediate," Mr Samaha said.
"As soon as rates rose in May 2022, refinance volumes lifted 25% compared to the previous month.
"Mortgage holders moved quickly to secure rates before further increases, and that activity stayed roughly 15% above the April 2022 baseline for the following six months."
He also noted that homeowners aged 46 and over led the way when it comes to enquiring about refinancing in the wake of the first 2022 hike.
“We’re seeing refinancing demand being driven by older demographics as mortgages stretch further into later life," he continued.
"As Australians are taking longer to enter the market, and as mortgage sizes are growing, mortgage debt can’t be considered just a young family’s burden - Gen X and pre-retirees are still actively refinancing.”
What are economists expecting for rates in 2026?
Published 1:57pm, Tuesday
The majority of economists are forecasting Tuesday to bring a 25 basis point cash rate hike, but that's about it. At least, that's it at three of the big four banks.
NAB remains the only big four bank in predicting a second 2026 rate movement, tipping another 25 basis point hike in May, which could bring the cash rate back up to 4.10%.
What could an RBA hike mean for savers?
Published 1:02pm, Tuesday
For people keeping money in savings accounts or term deposits, a 25 basis point hike could nudge some headline rates closer to 5% p.a., although banks don’t always pass on moves in full, and many top 'bonus' rates come with conditions.
Take the ING Savings Maximiser, for instance. It currently advertises a total potential rate of 4.75% p.a. (subject to meeting the account’s criteria).
On a $100,000 balance, 4.75% works out to about $4,750 a year in interest. If that rate rose to 5% p.a., returns would lift to roughly $5,000 a year - an extra $250.
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How much could a rate hike cost home loan holders?
Published 12:55pm, Tuesday
If you have a variable home loan interest rate, you might be wondering what a rate hike could mean for your hip pocket.
A 25 basis point increase, as is expected, could see the repayments on a $500,000 home loan with a 5.50% p.a. interest rate (the typical variable rate as per RBA data) increase by nearly $80 per month or around $950 a year.
For those with an average-sized loan (as per ABS data considering new owner-occupier loans) of closer to $700,000, repayments might increase by around $110 per month.
However, many banks, including three of the big four, didn't automatically adjust borrowers' repayments in the wake of the three cash rate cuts passed down by the RBA in 2025. According to data from NAB and CommBank, only one in ten home loan holders went out of their way to realise repayment savings at various points in the cycle.
Thus, borrowers already paying extra on their home loan might find their repayments stay where they are if the RBA hikes today.
Still though, mortgage holders should check in if their interest rate moves to ensure they're still meeting their minimum repayments.
The data behind today's cash rate call
Published 12:45pm, Tuesday
Among what's no doubt a comprehensive suite of data the RBA board contemplates when making its February decision are two key pieces:
- The Consumer Price Index (CPI) for December
- Unemployment data for December
Both Australian Bureau of Statistics data points surprise on their release, with the unemployment read showing unexpected strength in the jobs market and the CPI release showing an uptick in inflation.
The December CPI read saw underlying inflation come in at 3.3% on an annual basis – above the RBA's 2% to 3% target range and higher than its in-house forecasts.
Meanwhile, the latest labour force data saw unemployment tick down to 4.1%.
In addition to those data points, the RBA board will likely weigh the likes of wage growth, economic expectations, consume and business activity, and global conditions.
When will the RBA announce its interest rate decision?
Published 12:30pm, Tuesday
The RBA monetary policy board will be revealing its latest cash rate cut (or hold) at 2:30pm AEDT.
For Queensland readers, that means the announcement will come at 1:30pm (AEST). For those in Western Australia, the decision will be announced at 11:30am AWST and those subject to Australian Central Standard Time (ACST) will receive the news at 1:00pm.
Welcome: LIVE coverage of the RBA's February cash rate decision
Published 12:20pm, Tuesday
Hello and welcome to Savings.com.au's live RBA cash rate coverage. I'm Brooke, Savings.com.au's assistant editor, and I'll be with you all day giving you the latest on the RBA's February decision, expert and industry commentary, and major banks' and lenders' responses.
PLEASE refresh this page periodically for the latest updates and if you have any questions, hit me up at editorial@savings.com.au.