What happened
The Reserve Bank of Australia raised the official cash rate by 25 basis points to 4.60% on 29 September, marking its fourth rate increase in 2026. Headline inflation rose to 4.0% in August, while trimmed mean inflation held steady at 3.6%. ANZ and Westpac project another hike in November, whereas CBA and NAB expect a hold.
Why it matters here
Higher cash rates elevate borrowing costs across variable home loans and corporate debt while boosting yields on cash savings. With underlying inflation remaining above the RBA target band of 2% to 3%, equity valuations and consumer spending face persistent macroeconomic headwinds as refinancing obligations escalate across Australian households.
What to watch
September quarter CPI figures released on 28 October 2026, ahead of the next RBA Monetary Policy Board decision scheduled for 3 November 2026.
Source
aussie.com.au