The current RBA cash rate is 3.85%, following a 25bps rise announced on 4 February 2026. This page is a living tracker - auto-updated within minutes of every RBA decision with the latest rate, what changed, and what it means for your savings, mortgage, and term deposits.
Current Status
| Detail | Value |
|---|---|
| Current cash rate | 3.85% |
| Last decision | 25bps rise |
| Decision date | 4 February 2026 |
| Next meeting | 18 March 2026 |
What the RBA Decided - and Why
At its 4 February 2026 meeting, the RBA Board set the cash rate target to 3.85%. This decision represents a 25bps rise from the previous setting.
The Board noted that while inflation has moderated, it remains above the 2–3% target band in some key areas of the economy. Economic conditions remain resilient, with the labour market sustaining low unemployment levels despite some recent softening.
The key takeaway: The RBA is signalling it remains data-dependent. Future decisions will be strictly guided by incoming data on inflation, the labour market, and global economic conditions. The Board is maintaining a watchful stance and has indicated it will do what is necessary to return inflation to target.
Rate Decision History
| Date | Rate | Change | Direction |
|---|---|---|---|
| Feb 2026 | 3.85% | +0.25% | Increase |
| Aug 2025 | 3.60% | -0.25% | Cut |
| May 2025 | 3.85% | -0.25% | Cut |
| Feb 2025 | 4.10% | -0.25% | Cut |
| Nov 2023 | 4.35% | +0.25% | Increase |
| Jun 2023 | 4.10% | +0.25% | Increase |
| May 2023 | 3.85% | +0.25% | Increase |
| Mar 2023 | 3.60% | +0.25% | Increase |
| Feb 2023 | 3.35% | +0.25% | Increase |
| Dec 2022 | 3.10% | +0.25% | Increase |
| Nov 2022 | 2.85% | +0.25% | Increase |
| Oct 2022 | 2.60% | +0.25% | Increase |
| Sep 2022 | 2.35% | +0.50% | Increase |
| Aug 2022 | 1.85% | +0.50% | Increase |
| Jul 2022 | 1.35% | +0.50% | Increase |
| Jun 2022 | 0.85% | +0.50% | Increase |
| May 2022 | 0.35% | +0.25% | Increase |
| Nov 2020 | 0.10% | -0.15% | Cut |
What the Market Expects
Financial markets price in future RBA decisions via interbank futures contracts. These aren't predictions - they represent the aggregate positioning of institutional traders.
As of early 2026, the market outlook is mixed:
- Major bank economists are divided, with some forecasting further potential tightening due to persistent inflation, while others see rates on hold.
- Interbank futures suggest a cautious path forward, sensitive to quarterly inflation data.
What this means for you: The "higher for longer" narrative has returned. If you're deciding between fixed and variable rates, note that the risk of further increases is back on the table. Fixed rates may offer protection against further hikes, but locks you in if rates eventually fall. Markets have been wrong before-notably in 2023–2024-so buffer your budget for potential volatility.
How the Cash Rate Affects You
Your Mortgage
The cash rate is the single biggest lever on mortgage costs. Since the RBA began raising rates in May 2022, the average variable home loan rate has risen from around 2.50% to beyond 6.00%.
On a $500,000 loan over 30 years:
| Cash Rate Scenario | Approximate Rate | Monthly Repayment | vs. 2022 Low |
|---|---|---|---|
| May 2022 (0.10%) | ~2.50% | $1,976 | Baseline |
| Current (3.85%) | ~6.00% | $2,998 | +$1,022/mo |
| If cut 0.25% | ~5.75% | $2,918 | +$942/mo |
| If cut 0.50% | ~5.50% | $2,839 | +$863/mo |
Looking for the lowest variable rate right now? Here are today's best:
| Lender | Product | Rate | Comparison | Features |
|---|---|---|---|---|
 Bank of China | Discount Home Loan (With Principal And Interest Repayment) (Variable) | 5.43% | 5.64% | RedrawExtra |
| Bank of China | Discount Plus Home Loan (With Principal And Interest Repayment) (Variable) | 5.43% | 5.82% | OffsetRedrawExtra |
| Up Home Loan (Variable) | 5.45% | 5.45% | OffsetRedrawExtra | |
| Home Value Loan (Variable) | 5.49% | 5.50% | RedrawExtra | |
| Home Value Loan (Variable) | 5.54% | 5.55% | RedrawExtra | |
 ME Bank | Me Bank Econome Home Loan (Variable) | 5.58% | 5.60% | RedrawExtra |
Your Savings
Higher cash rates mean higher savings rates - though banks don't always pass on the full increase. As of today, the best savings accounts offer rates above 5.00% p.a. with bonus conditions met.
| Bank | Product | Max Rate | Ongoing Rate | Est. 1st Year on $10k | Conditions | Balance Cap |
|---|---|---|---|---|---|---|
| Savings Accelerator | 5.40% | 4.35%↓ | +$285 | Base 4.35% | $500,000 | |
| High Interest Savings Account | 5.35% | 3.70%↓ | +$425 | Intro 5.35% | $250,000 | |
| Save Account | 5.35% | 4.60%↓ | +$485 | Grow their total Save account balances by at least $1 each month, excluding interest credits. | $1,000,000 | |
| Westpac Life (Under 35) | 5.25% | 5.25% | +$525 | Make 20 eligible purchases with the debit card linked to your Westpac Choice account each month. | $30,000 | |
| Smart Saver Account (Under 25) | 5.25% | 5.25% | +$525 | Grow your balance each month and make no more than 2 withdrawals in the month. | $49,999 | |
| Bankwest Easy Saver | 5.20% | 4.25%↓ | +$457 | Intro 5.20% | $250,000.99 |
See our full Best Savings Accounts guide to compare rates across 46+ banks.
Your Term Deposits
Term deposit rates closely track the cash rate. When the RBA is signalling stability or potential cuts, you may see longer-term TD rates soften before any official decision. Locking in a competitive TD rate now could be a smart move if you believe cuts are on the horizon.
| Bank | Product | Term | Rate | Min Deposit |
|---|---|---|---|---|
| Online Term Deposit | 5 years | 5.10% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.10% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $250,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $100,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $500,000.01 |
The Bigger Picture
The RBA's dual mandate is to maintain price stability (2–3% inflation target) and support full employment. The cash rate is its primary tool. When inflation is too high, the RBA raises rates to cool spending. When the economy is weak, it cuts rates to stimulate activity.
The hiking cycle that began in May 2022 was the most aggressive in a generation, taking the rate from 0.10% to a peak of 4.35% in November 2023. After three successive 0.25% cuts in 2025 (February, May, August) brought the rate from 4.35% back down to 3.60%, the RBA reversed course and raised again to 3.85% in February 2026. The central question for 2026 is whether inflation data will allow the RBA to resume easing or whether further tightening is needed.
Practical Steps Based on Today's Rate
- On a variable rate mortgage? Watch this tracker. Any rate cut will flow through to your repayments. Consider whether to fix now or wait.
- Considering fixing? Compare fixed rates against the potential savings from future variable cuts. Our fixed vs variable guide helps model this.
- A saver? Higher rates are great for savers, but they won't last forever. Consider locking some funds into a term deposit while rates remain elevated.
Frequently Asked Questions
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