Market Movements.

A weekly read on what’s changed in the Australian lending market: cash rate moves, fixed and variable rate shifts, lender policy updates, and what it all means for borrowers and businesses. Published every Friday.

Latest · Week 19
8 May 2026

RBA hikes to 4.35% in 8–1 vote; June finely balanced

Third consecutive hike on a wider 8–1 margin. Markets price only ~20% odds of a June follow-up. Westpac sees inflation tilted to the upside through 2026. AUD touches a four-year high.

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1 May 2026 · Week 18

Inflation reaccelerates, but the details matter

Headline CPI back at 4.6% on rebate roll-off, but trimmed mean eased to 3.3%. Markets pull forward easing expectations and price a Q3 cut.

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24 April 2026 · Week 17

Labour market holds steady, but risks are building

Unemployment at 4.3%, hours worked at a record high. Oil at $97/bbl on Middle East tensions; AUD slips on softer commodity sentiment.

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27 March 2026 · Week 13

Inflation softens, but fuel shock looms

Feb CPI eased to 3.7% as housing inflation cooled. Cash rate at 4.10%, but oil up 40% YTD threatens the disinflation path.

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20 March 2026 · Week 12

RBA tightens policy as risks become more complex

A 5–4 vote lifts the cash rate to 4.10%. Oil-shock scenarios sketched as high as $130/bbl. Borrowers feel the squeeze on serviceability.

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13 March 2026 · Week 11

Rate outlook shifts as oil shock lifts rate expectations

Markets push the projected peak cash rate up to 4.35%. Australia's $12 trillion housing market sits in focus as fixed-rate pricing repositions.

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6 March 2026 · Week 10

Growth holds steady as demand and productivity improve

Q4 GDP up 0.8%, productivity up around 1%. Domestic demand resilient. RBA still on watch as services inflation lingers.

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27 February 2026 · Week 9

Inflation edges higher in January; core holds steady

Headline CPI lifts to 3.8%, trimmed mean steady at 3.4%. Electricity up 18.5% as rebates roll off. AUD near three-year highs.

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20 February 2026 · Week 8

Unemployment remains at 4.1%, but participation is doing the work

Wages up 3.4% YoY, credit growth at its fastest pace since mid-2022. The headline hides the story; participation is the swing factor.

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31 January 2026 · Week 5

Inflation isn’t done yet. Rate hike likely.

Q4 trimmed mean at 3.4% reinforces a February hike. All four major banks expect the cash rate to lift to 3.85%. AUD near three-year highs.

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23 January 2026 · Week 4

RBA policy watch: inflation data holds the casting vote

Unemployment falls to 4.1% on +65,000 jobs. February hike probability jumps from 27% to 56%. AUD reaches a 16-month high.

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16 January 2026 · Week 3

Progress, but not yet mission accomplished

First Market Movements of 2026. Annual inflation eased to 3.4% in November, the lowest reading since August. Direction encouraging, but the work isn’t done.

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