RBA Hikes Rate to 4.35% Over M.East

RBA increased the cash rate by 25 basis points to 4.35% on 5 May 2026, with eight board members supporting the move.
The bank lifted its CPI forecast to 4.0% this year and trimmed‑mean CPI to 3.5% by end‑2026, citing Middle East energy disruptions.
RBA cut its 2026 GDP growth outlook to 1.3% from 1.8%, reflecting heightened inflationary pressures.
Australian dollar fell 0.2% and ASX 200 slipped 0.4% after the announcement.