February 2026: RBA lifts to 3.85% and resets expectations

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. Repayment resilience and conservative borrowing buffers come first.

Source: Reserve Bank of Australia cash rate target, as at the end of the month.

This article is general information only and does not constitute personal financial advice.