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RBA rate decision explained

What the Reserve Bank of Australia's cash rate decision is, when it lands in UK time, why it moves AUD/USD and how to manage risk around it.

Last updated: · By Forexuro Desk · Editorial policy

Published · Reviewed by the Forexuro Desk editorial team

What it is

The Reserve Bank of Australia sets the cash rate target, the overnight interest rate that anchors borrowing costs in Australia. Decisions are taken by the Monetary Policy Board, which aims for inflation of 2 to 3%, targeting the midpoint, alongside full employment. The Australian dollar, often called the Aussie, is one of the most traded currencies in the world and is closely tied to commodity prices and to demand from China.

Each decision is published in a statement, and the Governor holds a press conference afterwards. Four times a year the Bank also publishes its Statement on Monetary Policy, with updated forecasts for inflation, growth and unemployment.

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What to watch in the release

  • The cash rate target. The rate itself, and whether it moved as expected.
  • The statement. The Board's view on inflation and the labour market, and any hint about the next meeting.
  • The press conference. The Governor's answers often refine the message in the statement.
  • Statement on Monetary Policy. The quarterly forecasts, which markets compare with their own expectations.

When it is released

The RBA announces at 2:30pm Sydney time, which is early morning in the UK: about 03:30 UK time when Sydney is on summer time and the UK is not, and later in the northern summer. The Board meets eight times a year over two days. Check the RBA calendar for the exact dates, and use the market sessions clock to convert.

Why it moves markets

Expected interest rates drive the Aussie in the same way they drive other currencies, but AUD also carries a strong link to iron ore, metals and Chinese growth. A Board that sounds more worried about inflation than expected tends to lift AUD/USD; a softer tone tends to weaken it. As of 25 October 2026 the cash rate target is 4.60% after the 29 September decision, and the next decision is scheduled for 3 November 2026 at 2:30pm Sydney time; current figures and sources are on our central banks page, and the week ahead is covered in the AUD/USD forecast.

Which pairs and gold it moves

  • AUD/USD: The main pair for RBA news.
  • NZD/USD: Often moves in sympathy with the Aussie.
  • XAU/USD: No direct effect, but Australia is a major gold producer and the two can share a commodity and risk tone.

How much any market moves depends on the size of the surprise and on what else is happening; there is no fixed reaction.

RBA rate decision in context

The announcement falls in the Asian afternoon, after Tokyo has been trading for several hours but before London opens. Liquidity is reasonable but well below the London and New York sessions, so a surprise can push AUD/USD quickly before European traders arrive. Many UK traders first see the reaction when they wake up.

The most important local data in the run-up are the quarterly and monthly CPI figures and the monthly labour force report. Because the Aussie is sensitive to risk appetite, a decision that matches expectations can still be overshadowed by moves in equities, Chinese data or the US dollar the same week.

How to trade around it carefully

  1. Check the exact release time and convert it to UK time with the market sessions clock. Daylight saving changes on different dates in the UK, North America, Europe and the southern hemisphere, so the UK time of the same local announcement shifts during the year.
  2. Know what the market expects. Prices react to the surprise against expectations, and to the guidance about the next meeting, more than to the rate itself.
  3. For AUD positions, remember the decision lands before the London open. If you hold overnight, decide in advance whether to keep, reduce or protect the position.
  4. Decide in advance whether you will be flat, hold with reduced size or wait for the first move to settle. Many traders avoid opening new positions in the minutes before a decision.
  5. Expect wider spreads and possible slippage. Stops can be filled worse than their level when liquidity is thin; see slippage and gaps and weekend risk.
  6. Size down. If you hold through the release, a smaller position from the position size calculator keeps the money at risk within your plan.

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More events: FOMC rate decision · ECB rate decision · Bank of England rate decision · Bank of Japan rate decision · RBA rate decision · RBNZ rate decision · Bank of Canada rate decision · SNB rate decision · US CPI inflation · Non-farm payrolls (NFP)

Frequently asked questions

What time is the RBA decision in UK time?

The RBA announces at 2:30pm Sydney time, which is in the early hours of the morning in the UK, usually around 03:30 to 05:30 depending on daylight saving.

How often does the RBA meet?

The Monetary Policy Board meets eight times a year over two days.

What is the Statement on Monetary Policy?

The RBA's quarterly report with forecasts for inflation, growth and unemployment, published four times a year.

Which pairs react most to the RBA?

AUD/USD reacts most, and NZD/USD often moves in sympathy.

Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.