September 29, 2026. The Reserve Bank of Australia raised its cash-rate target by 25 basis points to 4.60% at its September meeting in Sydney. The Monetary Policy Board said the decision was unanimous. It is the fourth rate increase of 2026, following three earlier increases that the bank said had already tightened financial conditions.
The RBA’s September 29 decision statement says inflation remains elevated and that some risks identified in August are now materializing. Reuters reported on September 29 that the new rate is a 15-year high and that the four increases this year total one percentage point.
Why the board raised the rate
The bank cited higher global energy prices, pressure on domestic capacity and stronger-than-expected recent inflation outcomes in Australia. It said firms had reported rising costs and that some were raising, or considering raising, their own prices. Its statement also notes rapid global price growth for technology-related goods linked to AI demand.
Those factors are the board’s assessment of inflation risks, not a measure of how much each one added to the inflation rate. The bank said fuel costs have partly flowed into prices of other goods and services. At the same time, it described signs that consumer spending is easing, housing prices have fallen in most capital cities and new housing loans have declined.
What the decision means next
The cash-rate target guides the overnight money market in Australia. Changes can affect borrowing and savings rates, but individual lenders decide when and how to adjust their products. The RBA said it could raise its target again if needed to bring inflation sustainably back to its target; it did not announce another increase or commit to a date.
The statement also warns that the unresolved Middle East conflict and oil-supply disruptions add uncertainty to both inflation and growth. For comparison with a separate U.S. policy discussion, AskNovus reported on New York Fed President John Williams’s September 29 remarks. The two central banks make independent decisions for different economies.
Sources
Featured photo: TINYGLOBE via Unsplash; illustrative view of Sydney.
[…] The release adds to a week of major international economic updates. AskNovus also covered Australia’s September interest-rate decision. […]