What happened
The Reserve Bank of Australia raised the official cash rate target by 25 basis points to a 15-year high of 4.60% at its September meeting. Minutes confirm all identified upside inflation risks materialised, driven by higher global energy costs, Middle East disruptions, and rising expenditure on artificial intelligence infrastructure.
Why it matters here
High official interest rates continue to apply pressure to mortgage holders and damp corporate earnings expectations. The central bank highlighted that controlling persistent underlying inflation may require a broader slowdown in national economic growth and employment, keeping borrowing costs elevated for longer than previously anticipated.
What to watch
The Reserve Bank of Australia monetary policy board will announce its next cash rate decision on Tuesday, 3 November 2026, with money markets currently pricing in an 82 per cent probability of a hold.
Source
mortgagechoice.com.au