---
title: "RBA lifts cash rate to 4.35% as inflation risks mount"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286888972.md"
description: "The RBA has raised the cash rate to 4.35%, reversing last year's easing, with an 8-1 vote. Inflation remains high due to domestic cost pressures and rising fuel prices linked to the Iran war. Following the announcement, the ASX 200 increased by nearly 1%, while the Australian dollar fell to $0.71."
datetime: "2026-05-19T09:49:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286888972.md)
  - [en](https://longbridge.com/en/news/286888972.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286888972.md)
---

# RBA lifts cash rate to 4.35% as inflation risks mount

Rate hike decision: The RBA voted 8–1 to raise the cash rate to 4.35%, fully reversing last year’s policy easing. Inflation pressures: Persistent domestic cost constraints and surging fuel prices from the Iran war are keeping inflation elevated. Market reaction: The ASX 200 rose nearly 1% in morning trade, while the Australian dollar slipped to $0.71.

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