The Reserve Bank of Australia increased its cash rate target to 4.60% on 29 September 2026, lifting it from 4.35% in a unanimous Monetary Policy Board decision.
The bank said inflation remained elevated and some risks identified in August were beginning to materialise. Its statement pointed to higher global energy prices as the Middle East conflict broadened, rising technology-goods prices associated with AI demand and pressure on domestic capacity.
The RBA acknowledged that earlier rate increases had tightened financial conditions and that the economy appeared to be slowing. It nevertheless judged another increase necessary to support inflation’s return to target.
For borrowers, the cash rate decision does not automatically determine a mortgage’s new interest rate: lenders set their own rates and pass-through can vary. Savings rates can also differ between institutions.
The board said further increases remained possible if needed. That is a conditional warning rather than a commitment to another rise at its next meeting.
Source: Reserve Bank of Australia — 29 September monetary policy decision.
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