What happened
The RBA held the cash rate at 4.35% in August, with its next decision set for 29 September 2026. July CPI dropped to 3.5%, but trimmed mean inflation remained at 3.6%. NAB expects a 25 basis point rate hike in September, ANZ and CBA expect a hike in November, while Westpac forecasts no change for the remainder of 2026.
Why it matters here
For Australian mortgage holders and investors, a 25 basis point rate hike would elevate interest rates to 4.6%, increasing variable borrowing costs and affecting asset valuations across equities and property. With inflation still exceeding the RBA's 2% to 3% target band, financial conditions could tighten further if underlying price pressures fail to abate in coming months.
What to watch
Watch the Reserve Bank board cash rate decision on 29 September 2026, followed immediately by the ABS August inflation data release scheduled for 30 September to confirm underlying price trends.
Source
aussie.com.au