The Big Switch: New Rails, New Rates, and Summer Nights

The Mood: A City in High-Speed Transition

Melbourne enters Wednesday, 4 February 2026, with a palpable sense of adjustment. The city is currently navigating its first full working week under the "Big Switch"—the official commencement of full commuter services through the multi-billion dollar Metro Tunnel, which launched on February 1. While there is a buzz of excitement as commuters experience 3–4 minute peak-hour frequencies on the Sunbury and Dandenong lines, this is tempered by a fresh wave of economic caution. The mood is one of practical optimism: Melburnians are enjoying the most significant transport upgrade in decades while tightening their belts for a tighter year ahead.

The Key Talking Point: The RBA’s February Surprise

The primary topic of conversation over morning coffees today is yesterday’s significant announcement from the Reserve Bank of Australia (RBA). In its first meeting of 2026, the RBA board increased the cash rate by 0.25% to 3.85%. This move has caught many by surprise, as it marks the first rate hike in over two years following a period of easing throughout 2025. Governor Michele Bullock cited a late-2025 inflation spike and low productivity as the drivers for the decision. For Melbourne’s mortgage holders and renters, the news is a sobering reminder that the cost-of-living crisis hasn’t quite left the station, leading to a surge in debate regarding the state's economic trajectory for the rest of the year.

The Feel-Good Story: Midsumma Magic and Open-Air Classics

Despite the financial news, Melbourne’s summer cultural spirit remains a bright spot. The 2026 Midsumma Festival is now in its final week, continuing to bathe the city in a kaleidoscopic celebration of queer arts and culture. Tonight, the focus remains on community and creativity, with highlight performances scheduled at Chapel Off Chapel and Theatre Works. For those seeking a quieter evening, the Royal Botanic Gardens are hosting an open-air production of Twelfth Night under the stars. With today's weather forecast predicting a warm 31°C (88°F) and overcast conditions, it is a perfect evening for the city's traditional summer pastimes—be it the Moonlight Cinema or a twilight stroll along the Yarra—reminding us all why we love this city even when the economy gets a bit bumpy.

Morning Essentials for February 4th

• Weather: A high of 31°C, mostly overcast with a low UV index of 3. A cool change is expected to arrive by Thursday.
• Transport: The Metro Tunnel is in full operation. Pakenham and Cranbourne line services now run via the tunnel; Frankston line trains have reverted to the City Loop.
• Events: The Pirates of Penzance continues its run at the Palais Theatre at 7:30 pm.