RBA

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to3.85 per cent.

Preliminary estimates for January indicate that the index increased by 4.6 per cent (on a monthlyaverage basis) in SDR terms, after increasing by 1.7 per cent in December.

All growth rates for the financial aggregates are seasonally adjusted, and adjusted for theeffects of breaks in the series. Data for the levels of financial aggregates are notadjusted for series breaks, and growth rates should not be calculated from data on thelevels of credit.

The Reserve Bank experienced a system issue on the morning of 27 January 2026 thataffected some RBA payment settlement services, including certain payments and propertysettlements.

Members commenced their discussion of financial conditions by reviewing developments in advanced economyequity markets. Market sentiment had deteriorated briefly amid concerns about elevated valuations,especially for global technology companies.

The table below presents a summary of the latest financial aggregates statistics.

The RBA remains on hold with the cash rate kept at 4.35%. But the Board is gaining confidence in its own forecasts that inflation is coming down.

On Tuesday, the Reserve Bank of Australia's (RBA) meeting minutes showed that the current level of the cash rate best balanced the risks to inflation and the labour market. Given the considerable uncertainty about the economic outlook, each of the outcomes of rate cuts, leaving the current rate unchanged, and rate hikes were conceivable. The Board remained vigilant to upside risks to inflation.

While inflation has eased, the global economic outlook continues to be uncertain and vulnerabilities in the global financial system remain.