Australia and New Zealand Banking Group follows other major Australian banks and expects the Reserve Bank of Australia to raise interest rates in March.

Adam Boyton and Adelaide Timbrell of ANZ Bank stated in their research report on Thursday that the most direct impact of the Iran conflict on Australia is the rise in inflation. "In a situation where inflation is above the target level and the Reserve Bank of Australia believes the labor market is tight, inflation risks will be more central to the RBA board than risks related to economic activity." "The strong start to the economy in 2026 further exacerbated this trend: GDP grew by 2.6% year-on-year in the fourth quarter of 2025." The interest rate decision in March "will not be as clear as in February." Apart from the March meeting, the bank still expects another 25 basis point rate hike in May. "After that, we expect the RBA to pause the rate hikes to assess whether the increase in the cash rate is enough to curb inflation risks. This pause will also give the RBA time to assess the evolving geopolitical situation and global economic outlook."