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RBA Expected to Lift Cash Rate to 4.6%

9/10/2026

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Summary

Story summary

Reserve Bank of Australia is expected to raise its cash rate to 4.6% on 29 September, a 15-year high.
Deputy Governor Andrew Hauser warned inflation remains too high and may require further action.
July headline inflation was 3.5%, the 12th consecutive month above the RBA’s 2-3% target band.
Analysts estimate a 0.25-percentage-point hike would add about $121 to monthly mortgage payments on a $731,000 loan.

History

Historical Context

In the early 1980s, newly appointed Fed Chairman Paul Volcker raised the federal funds rate, which peaked near 20% in June 1981, to combat inflation that had hit 13.5% in 1980. The policy cut consumer-price inflation to 3.2% by 1983, restoring price stability. Inspired by that experience, Australia’s central bank is now preparing a modest rate increase to curb its own inflation expectations.

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Story summary

Reserve Bank of Australia is expected to raise its cash rate to 4.6% on 29 September, a 15-year high.
Deputy Governor Andrew Hauser warned inflation remains too high and may require further action.
July headline inflation was 3.5%, the 12th consecutive month above the RBA’s 2-3% target band.
Analysts estimate a 0.25-percentage-point hike would add about $121 to monthly mortgage payments on a $731,000 loan.

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