Australia raises cash rate to 4.60% as inflation pressures persist

The Reserve Bank of Australia raised its cash rate target by 0.25 percentage points to 4.60% on September 29, 2026, saying inflation remained too high despite signs that economic activity was slowing.

The decision was unanimous. The central bank said higher energy costs, pressure on domestic production capacity and rising global prices for technology goods were adding to inflation risks. Recent Australian inflation readings had also exceeded expectations at its previous meeting.

The bank described a mixed economic picture: consumer spending growth was easing, housing prices had fallen in most capital cities and new housing loans had declined, while business investment and borrowing remained strong.

Its statement warned that disruption to global oil supplies could keep prices elevated even as prolonged uncertainty weakened growth. The board said further rate increases remained possible if needed to return inflation sustainably to target.

The announcement sets the central bank's policy rate; it does not specify changes to individual lenders' mortgage or deposit rates.