Overview
- The 25 basis point increase is the second straight monthly hike, taking the cash rate to 4.1% after February’s rise.
- The board cited sharply higher petrol prices and a recent pickup in underlying pressures, warning inflation will sit above target for longer and expectations have ticked up.
- Headline inflation is about 3.8%, with Treasury scenarios pointing to a temporary rise into the high 4s if oil stays elevated.
- The split decision underscores the policy trade‑off, with five members backing a hike and four preferring to hold to assess growth risks.
- Repayments will rise for borrowers, with modeling suggesting roughly $90 more a month on a $600,000 loan, as markets digest a whipsawing AUD and gauge whether further moves hinge on oil and late‑April CPI.