What happened
Reserve Bank officials, including Governor Michele Bullock and Deputy Governor Andrew Hauser, appeared before the House Standing Committee on Economics on 18 September 2026. Hauser noted global real interest rates are closer to sensible levels, while economists increasingly tip a 25 basis point rate increase at the board's upcoming meeting.
Why it matters here
The Reserve Bank cash rate target currently sits at 4.35 per cent while underlying trimmed mean inflation remains elevated at 3.6 per cent. A rate hike to 4.6 per cent would increase monthly repayments for variable rate borrowers, lift cash deposit yields, and potentially weigh on ASX equity valuations.
What to watch
The RBA Monetary Policy Board meeting on 28 and 29 September 2026, where the official cash rate decision will be announced at 2:30pm AEST.
Source
abc.net.au