Interest rates go up: decision reflects growing uncertainty in the global economy

The Reserve Bank of Australia has hiked interest rates for the second consecutive month as war in the Middle East compounds inflation concerns. The split five-four decision on Tuesday was the tightest since the central bank started publishing vote tallies, with the RBA's monetary policy board lifting the cash rate by 25 basis points to 4.1 per cent.

A composite created on Thursday, February 12, 2026 featuring Treasurer Jim Chalmers and Governor of the Reserve Bank of Australia, Michele Bullock. Source: AAP / Susie Dodds/AAPIMAGE