Statement on Monetary Policy – February 2026
In Brief
Inflation has picked up and is likely to stay above the 2–3 per cent target range for some time. The unemployment rate remains low.
What is going on in the economy?
Inflation has increased strongly since the middle of last year.
Prices have gone up for a broad range of goods and services. Australian households and businesses have been spending more, the jobs market has remained strong, and the global economy has held up better than we expected.
How do we see the economy developing?
The Australian economy is likely to grow a bit faster this year than we previously thought.
The recent pick-up in spending by Australian households and businesses is likely to continue this year, providing a boost to the overall economy, before easing off a little.
The jobs market is expected to remain healthy.
The unemployment rate is expected to stay around its current low levels this year, and to increase only gradually after that.
Inflation is expected to be above the 2–3 per cent target range for a while longer.
Some of the recent price pressures are likely to continue and we expect inflation to be above the target for some time.
What did the Monetary Policy Board decide?
At its February meeting, the Board decided to increase the cash rate to 3.85 per cent due to the pick-up in inflation.
The Board is focused on delivering low and stable inflation and full employment.