Story perspectives

RBA Lifts Rate 0.25% to 4.35% as Inflation Hits 4.6%

4/29/2026

Summary

Story summary

The Reserve Bank of Australia will raise the cash rate by 0.25 percentage points to 4.35 percent at its May 4-5 meeting.
CPI inflation reached 4.6 percent annually in the year to March, up from 3.7 percent in February, with monthly CPI up 1.1 percent as automotive fuel prices jumped 32.8 percent.
Markets on April 28 gave a 76-78 percent chance of the hike as Treasury minister Jim Chalmers warned inflation could peak above 4.6 percent despite the fuel-excise cut.

History

Historical Context

In March 1990 the Reserve Bank of Australia raised the cash rate to 17 percent to curb 7.5 percent inflation, while Treasurer Paul Keating cut the deficit by AUD 3 billion and Prime Minister Bob Hawke urged wage restraint. The sharp tightening triggered the early-1990s recession, after which the RBA adopted explicit inflation targeting, underpinning two decades of growth until the 2020 COVID-19 slowdown.

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Story summary

The Reserve Bank of Australia will raise the cash rate by 0.25 percentage points to 4.35 percent at its May 4-5 meeting.
CPI inflation reached 4.6 percent annually in the year to March, up from 3.7 percent in February, with monthly CPI up 1.1 percent as automotive fuel prices jumped 32.8 percent.
Markets on April 28 gave a 76-78 percent chance of the hike as Treasury minister Jim Chalmers warned inflation could peak above 4.6 percent despite the fuel-excise cut.

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