The Reserve Bank of Australia (RBA) has hiked the cash rate on Tuesday afternoon amid material risk inflation will remain above target for longer than previously anticipated.
The 0.25% rate hike takes the cash rate to 4.10%, and is set to lift the average rate for a new owner occupier home loan to around 6.00% p.a.
Savings account customers stand to gain from any rate hikes that occur, although there's no guarantee banks will pass any rate increases on to savings accounts in full. But if the banks do hike by 0.25%, the average bonus savings account rate would increase to about 4.50% p.a.
Keep an eye on how your bank or lender is responding:
- RBA rate hike March 2026: Is your lender passing it on?
- Which banks are lifting savings rates after the RBA March rate rise?
Check Savings.com.au for ongoing interest rate updates
Published 04:30pm, Tuesday
RBA governor Michele Bullock has ended her media conference after Tuesday's decision to raise the official cash rate to 4.10%.
Continue to visit the Savings.com.au website to monitor increases to variable home loan rates as well as savings account interest rates.
Thanks for joining us with our live updates on the March cash rate decision.
We'll be back on board for the RBA's next monetary policy decision due on 4 May 2026.
ANZ and NAB economists still tipping May cash rate hike
Published 04:25pm, Tuesday
In the wake of Tuesday's cash rate decision, two of Australia's big four - ANZ and NAB - have restated their belief there will be another cash rate increase in May to 4.35%.
ANZ said this should mark the end of the current tightening cycle.
NAB economists said Tuesday's 5-4 split decision was closer than most expected.
They said the two interest rate hikes in 2026 so far are unlikely to see inflation returning to the target band and they expect a further 25 basis point hike in May.
Bullock not drawn on government spending
Published 04:20pm, Tuesday
Once again, RBA governor Michele Bullock has sidestepped questions about government spending and its role in fuelling inflation.
Ms Bullock said government spending "is what it is" and it's the board's role to work with that.
Questions about government spending generally come up at each media conference after RBA monetary policy decisions.
Ms Bullock is yet to be drawn on the issue.
Board aware of oil price effects
Published 04:15pm, Tuesday
Reserve Bank governor Michele Bullock said the challenge for the board was that if they didn't raise interest rates, "second round" effects from petrol prices would be much worse.
"If you don't bring excess demand down, and businesses are just going to build that into their costs for everyone," she said.
She acknowledged it would be tough for some people to be hit with higher fuel prices and an additional rise in mortgage rates.
"I do understand that but it will be much worse if inflation heads higher," Ms Bullock said.
Commentary before meeting over-analysed
Published 04:05pm, Tuesday
Ms Bullock disputed both her and Deputy Governor Andrew Hauser's comments before Tuesday's meeting indicated they were pushing for a cash rate hike on Tuesday.
Economists leapt on the comments of both officials in raising their odds of a March cash rate increase.
Ms Bullock said her comment that all meetings are "live" was not an indicator either way while her Deputy did not express an opinion in a podcast last week.
She said the fact the board delivered a split decision showed all decisions are the result of robust discussion and debate.
Bullock says RBA board considered "hawkish" hold
Published 03:50pm, Tuesday
Ms Bullock said monetary policy board members had a "robust discussion" about whether to raise or hold interest rates this month.
This is reflected in the 5-4 split in Tuesday's decision to raise the cash rate to 4.10%.
Ms Bullock conceded a hold would have given the board an opportunity to consider more data on inflation and would also provide a bit more clarity on the potential impact of the conflict in the Middle East.
But she said that all board members agreed that inflation is too high and that there are still inflationary pressure from excess demand in the economy.
She said the difference between board members was more in the timing of the rate increase, not in the direction of it.
Middle East conflict not the ultimate motivator for cash rate increase: RBA governor
Published 03:45pm, Tuesday
RBA governor Michele Bullock said the war in the Middle East and increase in fuel prices was not the ultimate trigger for Tuesday's decision.
She said the data had shown the economy had grown faster than its potential growth rate over the second half of last year.
The labour market had also further tightened recently as well as underlying inflation remaining high, she said.
"This is before considering what higher energy prices arising from the conflict in the Middle East would mean for our economy," she said.
"Higher petrol prices will add to inflation but they're not the reason for today's decision."
The media conference continues.
Treasurer says cash rate call reflects "uncertainty" in the global economy
Published 03:30pm, Tuesday
Federal Treasurer Jim Chalmers said the close vote to raise the cash rate to 4.10% reflects "uncertainty we're seeing in the global economy".
"It's not a surprising decision, but that doesn't make it any easier for millions of Australians with a mortgage," he said.
"We've got an inflation challenge in our economy already, and developments in the Middle East are making that worse."
He also said the Australian Competition and Consumer Commission (ACCC) is increasing surveillance of petrol suppliers and retailers doing the wrong thing by motorists.
Another interest rate rise to fuel mortgage stress
Published 03:15pm, Tuesday
Financial counsellors are urging people in financial stress to seek help in the wake of another cash rate rise.
Financial Counselling Australia said today's increase will add further pressure to Australians already struggling with housing costs and rising living expenses.
The group said it received almost 16,000 calls and online chats to the National Debt Helpline in February, the highest February total since 2020.
Mortgage stress is the leading reason people contact the Helpline, followed by credit card debt, ATO debt, energy bills, and personal loans.
All are likely to be affected by today's rise in the cash rate.
Financial Counselling Australia CEO Domenique Meyrick said people struggling need to know they're not alone.
"They should contact their bank or lender as soon as possible and ask about hardship options," she said.
"Free and independent help is available and financial counsellors can help people understand their options and deal with creditors."
Interest rate hikes to cool property market?
Published 03:10pm, Tuesday
Property analytics firm Cotality said the March cash rate hike is likely to cool demand in the housing sector but may further increase competition at the lower end of the market.
Cotality's national Home Value Index rose by 2.1% in the three months to February but nationally, properties in the lower-priced quartile rose by 3.2% as more buyers looked for affordability.
While the future direction of interest rates appears higher, there "remains uncertainty as to how high", Cotality analysts said.
They said a further interest rate hike in May, which is widely expected, would wipe out the three rate cuts of 2025.
RBA Governor to address the media
Published 03:00pm, Tuesday
As is usual, RBA governor Michele Bullock will hold a media conference on the rate decision at 3:30pm (AEDT).
No doubt there will be considerable interest in the marked divide between board members in the cash rate decision.
At 5 votes to 4, it's the closest split since anonymous board votes have been made public in July 2025.
RBA view of Middle East conflict
Published 02:53pm, Tuesday
As reflected by the split vote at today's meeting, the board has acknowledged the risks associated with the Middle East conflict, as follows:
"Globally, the conflict in the Middle East poses substantial risks in both directions. A longer or more severe conflict could put further upward pressure on global energy prices; this will push up near-term inflation and could also increase inflation further out if it impairs supply capacity or price rises get built into longer term inflation expectations. Higher prices and prolonged uncertainty may cause growth to be lower in Australia’s major trading partners and also in Australia."
The Board assures Australians it will be "attentive to the data and the evolving assessment of the outlook".
Other economic data also in the mix
Published 02:45pm, Tuesday
While the monetary policy board assessed part of the pick-up in inflation to reflect temporary factors, it also judged that the labour market has tightened a little recently and capacity pressures are slightly greater than previously assessed.
The Statement of Monetary Policy also said developments in the Middle East remain highly uncertain but under a wide range of possible scenarios could add to global and domestic inflation.
It said the board will continue to pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.
Inflationary pressures drive decision
Published 02:40pm, Tuesday
In its Statement of Monetary Policy accompanying the decision, the RBA said the Middle East conflict has resulted in sharply higher fuel prices which, if sustained, will add to inflation.
Short-term measures of inflation expectations have already risen, the statement said.
As a result, the board judged there is a material risk inflation will remain above target for longer than previously anticipated.
It said the risks have titled further to the upside and it was therefore appropriate to increase the cash rate.
Split decision!
Published 02:35pm, Tuesday
Today's decision was not unanimous: five RBA Board members voted to increase the cash rate to 4.10% while four voted to leave it unchanged.
RBA hikes cash rate 0.25%
Published 02:30pm, Tuesday
The RBA has decided to hike the cash rate by 25 basis points to 4.10% in March.
RBA March cash rate decision imminent
Published 02:23pm, 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.
Will all members of the RBA monetary policy board be on the same page?
Published 02:15pm, Tuesday
Westpac's chief economist Luci Ellis raised the prospect of a split vote on the cash rate in the March meeting.
Dr Ellis said there are good arguments for the cash rate staying on hold until May, given the possible temporary nature of the oil price shock that's driving inflationary pressures as well as the prospect of more extreme market instability.
The Reserve Bank began releasing anonymous voting results from its monetary policy board meetings in July last year.
To date, there has only been one split vote - in that first month of July 2025.
Since then, the board has been unanimous in its rates decisions, as follows:
July 2025 - rate hold - 6 for, 3 against
August 2025 - rate cut - unanimous
October 2025 - rate hold - unanimous
November 2025 - rate hold - unanimous
December 2025 - rate hold - unanimous
February 2026 - rate increase - unanimous
It remains to be seen whether Dr Ellis's hunch is accurate. It's also worth mentioning Dr Ellis is a former Reserve Bank assistant governor so well understands how monetary policy meetings could play out.
Not everyone is on board for a rate increase
Published 01:55pm, Tuesday
The Finance Brokers Association of Australia (FBAA) is urging the RBA to resist raising interest rates until the full economic impact of the Middle East conflict is known.
FBAA interim CEO Peter White said economic triggers may exist for a cash rate increase, these are not usual times.
"Australians are yet to experience the cost of living increases that are predicted to hit soon due to the Middle East conflict," Mr White said.
He said not only will fuel costs increase but this will also flow through to other supply chain increases, potentially adding hundreds of dollars to monthly household budgets.
"If interest rates rise as well, many mortgage holders may struggle to meet the increased payments," he said.
"This is particularly the case for first home buyers."
The FBAA is urging the RBA to take a cautious approach in March and resist increase the cash rate until the global situation stabilises.
What could an RBA hike mean for savers?
Published 01:33pm, Tuesday
For people with cash to put in savings accounts or term deposits, a 25 basis point hike may nudge many headline rates over 5.00% p.a.
Indeed, some of the market's highest savings and term deposit rates have already broken through the 5.00% benchmark.
A 5.00% p.a. savings rate would see someone with a $100,000 balance earn around $5,000 year in interest (depending on depositors meeting any conditions of course).
That would be an extra $250 on a previous interest rate of 4.75% p.a.
If your savings account is paying considerably less than those rates, it's worth checking what some of the more competitive rates on the market are paying.
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2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 |
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How much could a rate hike cost mortgage holders?
Published 01:18pm, 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 will see repayments on an average $700,000 home loan rise by about $115 per month - or about $1,380 a year.
However, this would come on top of an interest rate increase arising from the February RBA meeting which saw the average home loan repayment rise by around $110 per month.
This would mean average monthly repayments would rise by $225 - or $2,700 a year - in just the first quarter of 2026. This would also go a considerable way towards wiping out the three interest rate cuts handed down in 2025.
The data behind today's cash rate call
Published 01:08pm, Tuesday
The RBA's monetary policy board will consider a comprehensive suite of data when making its decision, including key measures of inflation and unemployment.
The Consumer Price Index for January put headline inflation at 3.8%, well above the RBA's target band of 2-3%. (February CPI data is due to be released on 25 March 2026.)
Jobs data for January showed unemployment held steady at 4.1% (new labour force data is scheduled for release on Thursday).
Inflation continues to remain elevated while the unemployment read shows continuing strength in the jobs market.
In addition to those key data points, the RBA monetary policy board will also likely weigh wages growth, economic expectations, consumer and business activity, and - perhaps more prominently than usual - global geopolitical conditions.
What are experts predicting for today's decision?
Published 12:48pm, Tuesday
The economic teams at each of the big four banks (CBA, Westpac, NAB, ANZ) are all predicting a 0.25% rate hike for March.
Meanwhile traders are less certain, with the market odds of a rate hike in March sitting at 58%, according to the latest read from the ASX RBA Rate Tracker.
When will the RBA announce its interest rate decision?
Published 12:34pm, Tuesday
The RBA monetary policy board will be revealing its latest cash rate hike (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 March cash rate decision
Published 12:20pm, Tuesday
Hello and welcome to Savings.com.au's live RBA cash rate coverage. I'm Denise, Savings.com.au's senior finance journalist, and I'll be with you today giving you the latest on the RBA's March 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.