Reserve Bank of Australia (RBA) Minutes Suggest Possible Policy Rate Increase

Minutes from the Reserve Bank of Australia (RBA) February 3, 2026, meeting show policymakers are seriously weighing another policy rate increase. The board lifted the official cash rate to 3.85% and flagged inflation risks that could justify further action. This shift surprised some economists who expected a long pause after 2025’s cuts. Recent data shows inflation running above the RBA’s 2–3% target, and strong demand in key sectors is adding to price pressures. Markets quickly reacted, with traders pricing in a significant chance of more tightening later this year. As borrowers and investors digest these clues, the big question remains: Is another rate hike closer than most think?