Australia Central Bank Remains Uncertain on Future Rate Path Following February Hike

RBA minutes released today show the board hiked rates to combat persistent inflation. Future moves remain data-dependent as officials see no set policy path.

The Reserve Bank of Australia AUAU board has unanimously raised the cash rate by 25 basis points to 3.85% today. This decision marks a clear shift in the monetary policy stance as board members judged that, without tightening, inflation would remain persistently above target. The move reverses one of the three rate cuts made in 2025 and comes amid materially shifted inflation and employment risks.
A man smokes next to the Reserve Bank of Australia headquarters in central Sydney, Australia, on February 6, 2018. REUTERS/Daniel Munoz
A man smokes next to the Reserve Bank of Australia headquarters in central Sydney, Australia, on February 6, 2018. REUTERS/Daniel Munoz
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