The RBA has done it again…

In what turned out to be one of the closest decisions we’ve seen since voting transparency was introduced, the cash rate has been lifted by 25 basis points to 4.10%.

This was a genuine knife-edge call.

With a five-to-four split among board members, it’s clear there’s some serious debate happening behind the scenes. But in the end, the majority decided that “sticky” inflation — now being fuelled by global tensions and rising oil prices — was simply too risky to ignore.

That makes this the second rate hike of 2026, and a pretty clear signal that the RBA isn’t convinced the worst is behind us just yet.

The bottom line?

While inflation has come down from its 2022 peak, it started creeping higher again late last year. The RBA is effectively saying: better to act early than risk falling behind.

With rates moving again, it’s a good time to check whether your current loan is still working as hard as it should.

If you’re wondering how this latest hike impacts your setup — or whether there’s a more competitive option out there — you can book a quick loan review with the Empower Wealth team.

It’s all about staying ahead of the curve, now that the path back to the 2–3% inflation target is looking a bit bumpier than we all hoped.