RBA Rate Decision: Cash Rate at 4.35% and Next Meeting Date

If you’ve been checking your mortgage with a knot in your stomach, you’re not alone: the Reserve Bank of Australia just bumped the cash rate to 4.35%—the third increase of 2026—unwinding the cuts borrowers enjoyed last year. Here’s a clear look at what changed, why it matters for your household budget, and what to expect from the RBA next.

Current Cash Rate: 4.35% · Last Change: +25 bps (5 May 2026) · Announcement Time: 2:30 pm AEST · Meeting Frequency: 8 per year

Six key facts at a glance frame the May 2026 decision and its immediate consequences.

What time is the RBA rate decision?

What time does the RBA announce the cash rate?

• The RBA announces interest rate decisions at 2:30 pm AEST on each scheduled Board meeting day (SBS News live blog).
• The decision is released via a media statement on the RBA website.
• A governor’s media conference follows at 3:30 pm AEST (Tora Finance, financial news aggregator).

Is the announcement at the same time every meeting?

Yes, for all scheduled meetings the announcement hits at 2:30 pm AEST. For unscheduled or emergency meetings, the RBA may vary the time and issue a separate media release. The May 2026 meeting followed standard timing.

The pattern: the RBA’s schedule provides predictability for borrowers watching for changes.

Did RBA raise interest rates today?

What was the RBA’s latest rate decision?

At its May 2026 meeting the RBA Board voted 8–1 to increase the cash rate by 25 basis points to 4.35% (SBS News live blog). This was the third consecutive hike of 2026, following increases in March and April that took the rate from 3.85% to 4.10% (Aussie Home Loans, major mortgage broker analysis).

How much did the RBA change rates?

The increase of exactly 25 basis points was widely expected by markets—the Tora Finance report noted an 86% probability priced in before the decision. AMP chief economist Shane Oliver had estimated a 60% chance of a hike, so the move was not a surprise to most economists.

The implication: borrowers who had hoped for rate relief in 2026 will have to wait. The three hikes add roughly $272 per month to a $600,000 mortgage compared with the end of 2025, according to SBS News calculations.

What is the RBA interest rate decision?

What is the current RBA cash rate?

The current cash rate target is 4.35%, effective from 6 May 2026 (RBA Cash Rate Target Overview). This is the rate banks pay to borrow overnight from each other and it flows through to variable mortgage and savings rates.

How is the RBA rate decision determined?

The RBA Board meets eight times a year, typically on the first Tuesday of the month (excluding January). The decision is based on the central bank’s monetary policy framework, which targets inflation between 2–3% over the medium term while also considering employment, wages, and global conditions. The Board reviews a detailed economic assessment prepared by RBA staff before voting.

The implication: the dissenting vote adds uncertainty to the outlook for further hikes.

What date is the next interest rate decision?

When is the next RBA meeting?

The next scheduled RBA Board meeting is Tuesday, 16 June 2026, with the decision announced at 2:30 pm AEST (SBS News). The RBA publishes an annual calendar on its website.

How can I track upcoming RBA decisions?

The ASX RBA Rate Tracker provides market-implied probabilities for future decisions, while the RBA’s own media releases and the SBS News live blog offer day-of coverage. Most major bank economists publish forecasts ahead of each meeting.

The takeaway: mark the calendar and monitor data releases between meetings.

When can we expect the next interest rate cut?

Will interest rates drop to 3% again?

The timing of rate cuts depends on inflation falling sustainably within the RBA’s 2–3% target band. Some economists, including Shane Oliver of AMP, predict the RBA may begin cutting later in 2026 if inflation data softens. However, the Board has not indicated a specific timeline for cuts, and the May hike suggests it remains concerned about persistent price pressures.

What are the forecasts for future rate cuts?

Forecasts vary widely. Finder’s analysis highlights that if the cash rate were to drop back to 3%, a borrower with a $736,259 loan would save around $2,657 per year compared with current rates. But that scenario is far from certain. The RBA’s own statement emphasised that the Board will “continue to monitor data closely and not rule anything in or out.”

For Australian mortgage holders, the message from the May 2026 decision is clear: budget for higher repayments in the short term, but watch the June meeting closely. If inflation starts to ease, the RBA’s next move could be a cut later in the year. For borrowers with variable-rate loans, the extra $90–$150 per month per 0.25% hike means either tightening spending or locking in a fixed rate now.