What happened
The Reserve Bank of Australia increased the official cash rate by 25 basis points to 4.60 per cent on 29 September, marking its fourth rate rise of 2026. August headline inflation rose to 4.0 per cent while trimmed mean inflation held at 3.6 per cent. Major banks are split on the next move, with ANZ and Westpac forecasting a hike to 4.85 per cent.
Why it matters here
All four major Australian retail banks are passing the September rate increase on to home loan customers in full, eliminating sub-6 per cent variable mortgage rates among the big four. Elevated borrowing costs continue to squeeze household discretionary budgets, dampening consumer confidence and impacting equity valuations in retail and financial sectors.
What to watch
The ABS releases September-quarter CPI data on 28 October 2026, which will be the critical input before the RBA Board meets on 3 November 2026.
Source
aussie.com.au