In early February 2026, the Reserve Bank of Australia (RBA) raised the official cash rate by 25 basis points to 3.85%, marking its first interest rate increase since late 2023.
When interest rates are rising, it may seem counter intuitive to consider refinancing loans. However, there are several reasons why people should still evaluate refinancing options in such a scenario.
This year, we have seen a great deal of turbulence in the share market. After falling sharply in mid-June, share markets experienced a brief window of recovery in mid-August reversing half of their declines.
For most people, interest rates can be confusing. The Reserve Bank of Australia (RBA) is tasked with the responsibility of setting interest rates. It does this at monthly board meetings by determining the cash rate. The cash rate is the price the big retail banks pay to borrow money in the overnight cash markets.