Story perspectives

RBA Raises Cash Rate to 4.6%, Highest in 15 Years

By Drooid · Sep 30, 2026, 10:48 AM UTC · How we work

Summary

Story summary

The Reserve Bank of Australia raised the cash rate to 4.6 percent, its highest in 15 years.
Australia’s consumer price index climbed to 4 percent in August, a four-month high.
Housing-related costs rose 5.7 percent year-on-year to August, the largest inflation component.
Reserve Bank governor Michele Bullock said the Middle East conflict is adding to domestic price pressures.
BHP reported copper revenue surpassed iron-ore profit for the first time amid rising AI-driven demand.

History

Historical Context

In the early 1990s recession the Reserve Bank of Australia raised rates sharply, a move backed by Prime Minister Bob Hawke and warned by Governor Ian Macfarlane. Howard-era reforms later cut unemployment from over 8 to 5 percent, shaping a cautious stance on tightening. Today Governor Michele Bullock lifts the rate to 4.6 percent as CPI hits 4 percent.

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Story summary

The Reserve Bank of Australia raised the cash rate to 4.6 percent, its highest in 15 years.
Australia’s consumer price index climbed to 4 percent in August, a four-month high.
Housing-related costs rose 5.7 percent year-on-year to August, the largest inflation component.
Reserve Bank governor Michele Bullock said the Middle East conflict is adding to domestic price pressures.
BHP reported copper revenue surpassed iron-ore profit for the first time amid rising AI-driven demand.

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