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Home » Australia » Business » Finance » Inflation: Reserve Bank Raises Cash Rate

Inflation: Reserve Bank Raises Cash Rate

Amandine Decobeck Amandine Decobeck
February 4, 2026
Reading Time: 1 min read
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The Reserve Bank of Australia has pushed the cash rate up to 3.85 percent following increased inflation levels recorded in late 2025.

The decision has prompted warnings from financial experts about additional strain on Australia’s already pressured rental sector.

Meanwhile, analysts are expressing concern about how the rate increase will affect households already experiencing financial hardship across the country.

Coalition Negotiations Include Shadow Cabinet Restrictions

Liberal Party leader Sussan Ley has presented several requirements to the Nationals as part of potential coalition reunification talks.

Among the key stipulations is a six-month exclusion from Shadow Cabinet for three Senators who broke party lines during voting on the Government’s hate speech legislation.

Ley and Nationals Leader David Littleproud held discussions yesterday focused on restoring the coalition partnership.

The Nationals have made clear their position that restoring the three Senators to Shadow Cabinet positions would be essential for any reunion agreement.

Additional Liberal proposals call for both parties to recommit to Shadow Cabinet unity and establish that neither party room can independently reverse decisions approved by the Coalition Shadow Cabinet.

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