What happened
The Reserve Bank of Australia kept the cash rate at 4.35% in August, with its next decision on 29 September 2026. July headline inflation slowed to 3.5% from 3.8% in June, but trimmed mean inflation held at 3.6%. Consequently, ANZ revised its call to predict a November rate hike, while Commonwealth Bank and Westpac warned of heightened rate rise risks.
Why it matters here
With both headline and underlying inflation sitting above the RBA target range of 2% to 3%, cash rate cuts remain distant. Higher borrowing costs continue to press on household discretionary spending and corporate debt service capabilities, while shifting yield expectations across local bond and stock markets.
What to watch
The RBA board interest rate announcement on 29 September 2026, closely followed by the Australian Bureau of Statistics August monthly consumer price index release on 30 September 2026.
Source
aussie.com.au