Rate Watch
February 2026: RBA lifts to 3.85% and resets expectations
The February 2026 surprise increase to 3.85% changed near-term market assumptions.
28/02/2026 • Chorus Finance
February 2026 rate watch: The policy rate moved up by 0.25 percentage points to 3.85%.
The RBA raised the cash rate target to 3.85%. The move challenged prior easing assumptions and pushed markets to reprice the outlook.
After the decision, major bank economists adjusted their outlooks, with several reducing expectations for near-term cuts.
Broker takeaway: When policy surprises, structure strength matters more than ever. We shifted clients back to repayment resilience and conservative borrowing buffers.
This article is general information only and does not constitute personal financial advice.